In Macroland, a Country Whose Economy Operates According to Okun's

question 3

Multiple Choice

In Macroland, a country whose economy operates according to Okun's law, potential GDP equals $10 trillion, the actual rate of unemployment is 8 percent, and the natural unemployment rate is 6 percent. What is real actual GDP in Macroland?

• A)$9.6 trillion
• B)$9.8 trillion
• C)$10 trillion
• D)$10.2 trillion

---

Definitions:

Validity Rules

The set of rules or criteria used to assess whether the logical structure of an argument is valid, ensuring that if the premises are true, the conclusion necessarily follows.

Fallacy

An error in reasoning that renders an argument invalid, often due to irrelevant premises or faulty connections between ideas.

Syllogism

A form of reasoning in which a conclusion is drawn from two given or assumed premises, each of which shares a term with the conclusion.

Negative Premises

Statements within an argument that deny or negate a particular proposition or assumption.