If the output gap equals 0%, then Group of answer choices there is an expansionary gap cyclical unemployment equals the sum of structural and frictional unemployment the actual rate of unemployment is greater than the natural rate of unemployment. there is no cyclical unemployment potential GDP is greater than actual GDP

The output gap is a measure of the difference between actual GDP and potential GDP.

Step 1: Understand the concept of output gap. If the output gap is positive, actual GDP is greater than potential GDP, indicating an expansionary gap. If the output gap is negative, actual GDP is less than potential GDP, indicating a recessionary gap.

Step 2: Understand the given condition. If the output gap equals 0%, it means that actual GDP is equal to potential GDP.

Step 3: Analyze the answer choices.

• "There is an expansionary gap" is incorrect because an expansionary gap occurs when actual GDP is greater than potential GDP, not equal.
• "Cyclical unemployment equals the sum of structural and frictional unemployment" is incorrect because cyclical unemployment is related to the business cycle, not the sum of structural and frictional unemployment.
• "The actual rate of unemployment is greater than the natural rate of unemployment" is incorrect because when the output gap is 0, the actual rate of unemployment is equal to the natural rate of unemployment.
• "There is no cyclical unemployment" is correct because when actual GDP equals potential GDP, the economy is at full employment and there is no cyclical unemployment.
• "Potential GDP is greater than actual GDP" is incorrect because when the output gap is 0, actual GDP equals potential GDP.

Therefore, the correct answer is "there is no cyclical unemployment".