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Refer to the Accompanying Data, Which Is for a Speci?c

Question 267

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 Potential Real GDP $200 Billion  Natural Rate of Unemployment 6% Actual Rate of Unemployment 12%\begin{array} { | l | c | } \hline \text { Potential Real GDP } & \$ 200 \text { Billion } \\\hline \text { Natural Rate of Unemployment } & 6 \% \\\hline \text { Actual Rate of Unemployment } & 12 \% \\\hline\end{array} Refer to the accompanying data, which is for a speci?c year in a hypothetical economy for which Okun's law is applicable. If the unemployment rate in the economy fell to 6 percent, we could
Conclude that


A) only structural unemployment remained.
B) the economy's production possibilities curve shifted outward.
C) the economy had moved from a point inside its production possibilities curve to a point on or very near the curve.
D) nominal GDP would rise, but real GDP would fall.

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