Refer to the Accompanying Data, Which Is for a Speci?c

question 267

Multiple Choice

$$\begin{array} { | l | c | } \hline \text { Potential Real GDP } & \$ 200 \text { Billion } \\\hline \text { Natural Rate of Unemployment } & 6 \% \\\hline \text { Actual Rate of Unemployment } & 12 \% \\\hline\end{array}$$ Refer to the accompanying data, which is for a speci?c year in a hypothetical economy for which Okun's law is applicable. If the unemployment rate in the economy fell to 6 percent, we could
Conclude that

• A) only structural unemployment remained.
• B) the economy's production possibilities curve shifted outward.
• C) the economy had moved from a point inside its production possibilities curve to a point on or very near the curve.
• D) nominal GDP would rise, but real GDP would fall.

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Definitions:

Spatial

Refers to anything related to, occupying, or having the character of space.

Chronological

Relating to the arrangement of events or information in order of their occurrence in time.

Causal Relationship

A connection between two events or variables where one directly affects or causes changes in the other.

Purpose Statement

A declaration that outlines the objectives or goals of a project, company, or individual.