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Suppose a Country Has 1 Billion People

Question 37

Multiple Choice

Suppose a country has 1 billion people.75 percent of its citizens are in the labor force,with 90 million unemployed.Full employment occurs at 2 percent.Based on this information,by what percentage has real output failed to reach its potential according to the revised Okun's Law?


A) 2 percent.
B) 10 percent.
C) 12 percent.
D) 24 percent.

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