The following information is for a specific year in a hypothetical economy for which Okun's law is applicable: Potential Real GDP = $200 billion
Natural rate of unemployment = 6 percent
Actual rate of unemployment = 12 percent
The size of the GDP gap in percentage terms for the above economy is:
A) 9 percent.
B) 12 percent.
C) 15 percent.
D) 18 percent.
Correct Answer:
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