if real GDP is greater than potential GDP, does it always mean that unemployment rate is less than full employment rate, and vice versa? Thanks.
If I understood correctly yes. This means that in the short term the unemployment rate is below the full employment unemployment rate. So short term equilibrium is to the right of the potential GDP and this is also the case vice versa. This situation cannot however be maintained for a long period which on the LT leads back to full employment. On the philips curve this is also seen by a point on the curve to the right of the LT philips curve.