According to Okun's rule of thumb, if trend growth is 3 percent and the economy is producing at an annual rate of $7 trillion, if the rate of unemployment rises from 6 percent to 8 percent, income would be expected to:
A) fall by $140 billion.
B) rise by $140 billion.
C) fall by $70 billion.
D) rise by $70 billion
Correct Answer:
Verified
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