Suppose an Economy's Natural Rate of Unemployment Is 5 Percent $\tilde { Y }$

Multiple Choice

Suppose an economy's natural rate of unemployment is 5 percent. If the unemployment rate is 7 percent, according to Okun's law, $\tilde { Y }$ is:

A) 4 percent
B) -4 percent
C) 2 percent
D) -2 percent
E) Not enough information is given.