Suppose a Country Has 1 Billion People

question 144

Multiple Choice

Suppose a country has 1 billion people.75 percent of its citizens are in the labor force,with 90 million unemployed.Full employment occurs at 2 percent.Based on this information,by what percentage has real output failed to reach its potential according to the revised Okun's Law?

• A)2 percent.
• B)10 percent.
• C)12 percent.
• D)24 percent.

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Definitions:

Units

In the context of manufacturing and accounting, it refers to the individual items or quantities produced by a company.

Planning Budget

A budget created for a specific period in the future which is used for planning purposes, reflecting the strategic objectives of an organization.

Budgeting Formulas

Mathematical expressions or calculations used in the process of preparing budgets, forecasting revenues, and controlling costs.

Employee Salaries and Wages

Payments made to employees for their labor, including regular salaries and hourly wages.