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Answer the Question on the Basis of the Following Information $200\$ 200

Question 44

Multiple Choice

Answer the question on the basis of the following information for a specific year in a hypothetical economy for which Okun's law is applicable: Potential Real GDP = $200\$ 200 Billion
Natural Rate of Unemployment =6= 6 Percent
Actual Rate of Unemployment =12= 12 Percent Refer to the given data.The size of the negative GDP gap as a percent of potential GDP for the economy is:


A) 6 percent.
B) 9 percent.
C) 12 percent.
D) 15 percent.

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