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

---

Definitions:

Investment Company Act of 1940

A U.S. federal law that regulates the organization and activities of investment companies, primarily focused on protecting investors.

Small Investors

Individuals or parties that invest smaller amounts of capital or resources in financial markets or entities compared to larger investors.

Accredited Investor

An individual or entity that meets the requirements set forth by regulations, allowing them to invest in certain types of higher-risk investments, private placements, and other securities offerings not registered with regulatory entities.

Net Worth

The total value of an individual's or organization's assets minus liabilities, representing the financial health or wealth at a particular point in time.