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In 2010 a country's real GDP is 7480, potential GDP is 8000 and unemployment rate is 6%, then using Okun's Law the natural rate of
In 2010 a country's real GDP is 7480, potential GDP is 8000 and unemployment rate is 6%, then using Okun's Law the natural rate of unemployment in this country would be:
a. larger than unemployment rate
b. smaller than unemployment rate
c. same as the unemployment rate
d. indeterminate unless we know the participation rate
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