The economy of Omega operates according to Okun's law. In Omega, potential GDP and real GDP both equal $7 trillion, and the natural rate of unemployment equals 6 percent. What is the actual rate of unemployment in Omega?
A) 4.2 percent
B) 6.0 percent
C) 7.0 percent
D) 13.0 percent
Correct Answer:
Verified
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