The Following Information Is for a Specific Year in a Hypothetical

question 65

Multiple Choice

The following information is for a specific year in a hypothetical economy for which Okun's law is applicable: Potential Real GDP = $200 billion
Natural rate of unemployment = 6 percent
Actual rate of unemployment = 12 percent
The size of the GDP gap in percentage terms for the above economy is:

• A)9 percent.
• B)12 percent.
• C)15 percent.
• D)18 percent.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values in a data set differ from the mean of the set.

Algebra

A branch of mathematics dealing with symbols and the rules for manipulating these symbols in formulas.

Mathematical Likelihood

A measure of the probability of a set of observations given a particular statistical model.

Practice Or Treatment

The application of a particular procedure or regimen to a subject or subjects in an experiment or study.