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:

Attending to Others

The act of being present and fully engaged in listening and responding to the needs and concerns of others.

Clarifying Content

The process of making information, instructions, or content clearer and more comprehensible.

Arbitration

A form of dispute resolution where an impartial third party (the arbitrator) makes a binding decision to resolve a conflict between two or more parties.

Mediating

The process of intervening in a dispute with the aim to resolve it, often by helping the parties involved to find a mutual agreement.