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The Following Information Is for a Specific Year in a Hypothetical

Question 65

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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 size of the GDP gap in percentage terms for the above economy is:


A) 9 percent.
B) 12 percent.
C) 15 percent.
D) 18 percent.

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