If the Natural Unemployment Rate Is 5 Percent and the Actual

Multiple Choice

If the natural unemployment rate is 5 percent and the actual unemployment is 3 percent, then Okun's Law concludes that real GDP is

A) 2 percent greater than potential GDP.
B) 4 percent greater than potential GDP.
C) 2 percent less than potential GDP.
D) 4 percent less than potential GDP.
E) 3 percent greater than potential GDP.