Suppose that Human Resources and Social Development Canada (HRSDC) estimated Canada's natural rate of unemployment at 5.8% for 1994.The actual unemployment rate was 10.3% in 1994.Okun's law implies that,in 1994,Canada's negative output gap was
A) 8.1% of potential output.
B) 6.1% of potential output.
C) 5.1% of potential output.
D) 4.1% of potential output.
E) 9.0% of potential output.
Correct Answer:
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