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Suppose Potential GDP Is $100 Billion and the Natural Unemployment

Question 88

Multiple Choice

Suppose potential GDP is $100 billion and the natural unemployment rate is 5 percent.If the unemployment rate is 6 percent, then according to Okun's Law real GDP is


A) $98 billion.
B) $101 billion.
C) $99 billion.
D) $102 billion.
E) $100 billion.

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