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In Macroland,a Country That Operates According to Okun's Law,potential GDP

Question 15

Multiple Choice

In Macroland,a country that operates according to Okun's law,potential GDP equals $10 trillion,actual GDP is $9.6 trillion,and the actual rate of unemployment is 8%.What is the natural rate of unemployment in Macroland?


A) 4%.
B) 5%.
C) 6%.
D) 7%.
E) 8%.

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