Assume That the Full-Employment Level of Output Is $5000 Billion

question 96

Multiple Choice

Assume that the full-employment level of output is $5000 billion and the natural unemployment rate is 5%.Suppose the current unemployment rate is 8%.What would be the current level of output according to Okun's law (when the Okun's law coefficient is 2) ?

• A)$4500 billion
• B)$4700 billion
• C)$4900 billion
• D)$5000 billion

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