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
Correct Answer:

Verified
Correct Answer:
Verified
Q11: According to the Congressional Budget Office, from
Q12: Economic activity moves from a trough into
Q13: If all prices adjusted immediately to balance
Q14: Recessions begin at _ and end at
Q15: According to Okun's law, when cyclical unemployment
Q17: Suppose the actual rate of unemployment is
Q18: If potential output equals $8 billion and
Q19: According to Okun's law, when cyclical unemployment
Q20: Potential output is:<br>A)equal to actual output.<br>B)also known
Q21: If the actual rate of unemployment equals