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If an Economy with a Natural Rate of Unemployment of 6

Question 58

Multiple Choice

If an economy with a natural rate of unemployment of 6 percent were beset by a 7.33 percent unemployment rate and a potential GDP climbing at the rate of 3 percent per year, how fast would GDP have to grow over the course of the next year to achieve full employment at the natural rate in accordance with Okun's law?


A) 3 percent
B) 4 percent
C) 5 percent
D) 6 percent
E) 7 percent

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