If Real GDP in 2007 Dollars Is $1200 Billion and the Unemployment

Multiple Choice

If real GDP in 2007 dollars is $1200 billion and the unemployment rate is 8.0 percent when the natural unemployment rate is presumed to be 6.5 percent,then according to Okun's law how much higher could real GDP have been if the economy were operating at its potential output?

A) $45 billion
B) $12 billion
C) $37.5 billion
D) $4.5 billion
E) $25 billion