Suppose the unemployment rate is 8 percent and the natural ...

[joblessjake]

Suppose the unemployment rate is 8 percent and the natural unemployment rate is 6 percent. If potential GDP is 8 trillion, using Okun's Law what does real GDP equal?
 
  A) 8.32 trillion B) 8.00 trillion C) 8.16 trillion D) 7.68 trillion E) 7.84 trillion

Question 2

The Federal Reserve monetary policy goals of maximum employment means
 
  A) aiming for an amount of employment that exceeds full employment.
  B) cyclical unemployment should not necessarily be minimized.
  C) keeping the unemployment rate close to the natural unemployment rate.
  D) a zero percent natural unemployment rate.
  E) a zero percent unemployment rate.

[pikon]

Answer to Question 1

D

Answer to Question 2

C

[joblessjake]

Thank you

[pikon]

Happy to help you