The Economy of Alpha Operates According to Okun's Law

question 19

Multiple Choice

The economy of Alpha operates according to Okun's law.In Alpha,potential GDP equals $500 billion,actual GDP equals $520 billion,and the actual rate of unemployment is 3%.What is the natural rate of unemployment in Alpha?

• A) 1%.
• B) 2%.
• C) 3%.
• D) 4%.
• E) 5%.

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