If the Natural Rate of Unemployment Was 7 Percent, the Current

Multiple Choice

If the natural rate of unemployment was 7 percent, the current unemployment rate was 12 percent, and the nominal GDP was $4,000 billion, then according to Okun's law the economy would have sacrificed:

A) $10 billion in potential output.
B) $400 billion in potential output.
C) $40 billion in potential output.
D) $440 billion in potential output.