If the natural rate of unemployment was 7 percent, the current unemployment rate was 12 percent, and the nominal GDP was $4,000 billion, then according to Okun's law the economy would have sacrificed:

Question 25 options:

a)

$10 billion in potential output.

b)

$400 billion in potential output.

c)

$40 billion in potential output.

d)

$440 billion in potential output.

e)

None of the above