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In Okunland, a Country Whose Economy Operates According to Okun's

Question 16

Multiple Choice

In Okunland, a country whose economy operates according to Okun's law, real GDP equals $7,520 billion, potential GDP equals $8,000 billion, and the actual unemployment rate is 8 percent. What is the natural rate of unemployment in Okunland?


A) 2 percent
B) 5 percent
C) 6 percent
D) 11 percent

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