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Suppose That Real GDP Is $8 Trillion and the Unemployment

Question 20

Multiple Choice

Suppose that real GDP is $8 trillion and the unemployment rate is 5.5%. If, over the next year, potential output grows by 2.5 percent and the unemployment rate decreases by 1 percentage point to 4.5%, real GDP will increase to


A) $8.20 trillion.
B) $8.08 trillion.
C) $8.28 trillion.
D) $8.40 trillion.

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