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If the Natural Rate of Unemployment Is 6%,the Current Unemployment

Question 147
Multiple Choice

If the natural rate of unemployment is 6%,the current unemployment rate is 12%,and nominal GDP is $4,000 billion,then,according to Okun's law,the economy has sacrificed A) $240 billion in potential output. B) $480 billion in potential output. C) $700 billion in potential output. D) $840 billion in potential output. E) $940 billion in potential output.

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Q 148
Okun's law indicates that,for A) every 1 percentage point that the actual unemployment rate exceeds the natural rate of unemployment,there is a 2% negative output gap. B) every 1 percentage point that the actual unemployment rate exceeds the natural rate of unemployment,there is a 2% positive output gap. C) a positive 5% output gap,there is generated a 1 percentage point increase in the natural rate of unemployment. D) a negative 2% output gap,there is generated a 2 percentage point increase in the actual rate of unemployment. E) every 1 percentage point that the actual unemployment rate exceeds the natural rate of unemployment,there is a 3% negative output gap.
Q 149
In an economy,nominal GDP is $4,000 billion,the actual unemployment rate is 8%,and the natural rate of unemployment is 6%.According to Okun's law,there will be A) $80 billion lost in potential output. B) $100 billion lost in potential output. C) $160 billion lost in potential output. D) $300 billion lost in potential output. E) $400 billion lost in potential output.
Q 150
The unemployment duration is the length of a period during which an individual A) remains seasonally unemployed before becoming cyclically unemployed. B) remains frictionally unemployed before becoming cyclically unemployed. C) is continuously unemployed. D) stays out of the labour force. E) does not actively seek employment.
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