According to current estimates of Okun's law, if the output gap is 3%, the equilibrium unemployment rate is 4%, and the expected rate of inflation is 5%, then the unemployment rate is _____.
A) 3.5%
B) 3.5%.
C) 3%
D) 3%.
E) 2.5%
F) 2.5%.
G) 1.5%
H) 1.5%.
Correct Answer:
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