In an economy, potential GDP is $20 trillion and the natural unemployment rate is 4 percent. If the unemployment rate rises to 6 percent, what is the value of real GDP predicted by Okun's Law? Real GDP is _______. A. $20.4 trillion B. $19.6 trillion C. $20.8 trillion D. $19.2 trillion
In an economy, potential GDP is $20 trillion and the natural unemployment rate is 4 percent. If the unemployment rate rises to 6 percent, what is the value of real GDP predicted by Okun's Law? Real GDP is _______. A. $20.4 trillion B. $19.6 trillion C. $20.8 trillion D. $19.2 trillion
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter15: Measuring A Nation's Income
Section: Chapter Questions
Problem 6CQQ
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In an economy, potential GDP is $20 trillion and the natural unemployment rate is 4 percent. If the unemployment rate rises to 6 percent, what is the value of real GDP predicted by Okun's Law?
Real GDP is _______.
A.
$20.4 trillion
B.
$19.6 trillion
C.
$20.8 trillion
D.
$19.2 trillion
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