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Suppose That Human Resources and Social Development Canada (HRSDC)estimated Canada's

Question 155

Multiple Choice

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.

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