If the Negative GDP Gap Were Equal to 4% of the Potential

question 119

Multiple Choice

If the negative GDP gap were equal to 4% of the potential GDP, Okun's law suggests that the actual unemployment rate would exceed the natural rate of unemployment by:

• A) One percentage point
• B) Two percentage points
• C) Three percentage points
• D) Four percentage points

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Definitions:

Net Income

The total profit of a company after all expenses, taxes, and losses have been subtracted from total revenue.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the efficiency of a company in managing its production and labor.

Operating Expenses

Costs associated with running a company's core business activities but not directly tied to production.

Cost Of Goods Sold

The total of all costs used to create a product or service, which has been sold.