Multiple Choice
The following information is for a specific year in a hypothetical economy for which Okun's law is applicable: Potential Real GDP = $200 billion
Natural rate of unemployment = 6 percent
Actual rate of unemployment = 12 percent
The amount of output being forgone by the above economy is:
A) $12 billion.
B) $15 billion.
C) $18 billion.
D) $24 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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