If Real GDP in 2007 Dollars Is $1500 Billion and the Unemployment

question 27

Multiple Choice

If real GDP in 2007 dollars is $1500 billion and the unemployment rate is 7.5 percent when the natural unemployment rate is presumed to be 6.5 percent,then according to Okun's law how much higher could real GDP have been if the economy were operating at its potential output?

• A)$3.75 billion
• B)$10 billion
• C)$25 billion
• D)$37.5 billion
• E)$15 billion

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Definitions:

Unique Feature

a distinct characteristic or element noticeable in a person, object, or place that sets it apart from others.

Evolutionary Pathway

A sequence of genetic, structural, or functional changes that occur in a biological lineage over time leading to diversification and speciation.

Notochord

A flexible rod-like structure that provides support in all embryonic and some adult chordate animals.

Amniotic Egg

An egg with a protective amniotic membrane, enabling the embryo to develop outside the mother's body, characteristic of reptiles, birds, and certain mammals.