Suppose the Unemployment Rate Is 7%,the Natural Rate of Unemployment

question 150

Multiple Choice

Suppose the unemployment rate is 7%,the natural rate of unemployment is 5%,and actual GDP is $400 million.According to Okun's Law,what is potential GDP?

• A)$380 million
• B)$400 million
• C)$408 million
• D)$420 million
• E)$427 million

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Definitions:

Fluoridated Water

Water that has fluoride added to it to prevent tooth decay.

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