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The version of Okun's law studied in Chapter 10 assumes that when the actual unemployment rate is equal to the natural unemployment rate, the growth
The version of Okun's law studied in Chapter 10 assumes that when the actual unemployment rate is equal to the natural unemployment rate, the growth rate of real GDP is 3 percent oyer a year. If the unemployment rate falls 1 percentage points below the natural unemployment rate over a year, Okun's law predicts that real GDP would rise by _______ percentage points and the GDP growth rate for that year will be ________ percent. D a. 4;? '3 b. 2; l '3 C. l; 2 '3 d. 2; 5
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