According to ________, when real GDP is ________ percentage ...

[yoooooman]

According to ________, when real GDP is ________ percentage points greater than potential GDP, the unemployment rate is one percentage point ________ the natural unemployment rate.
 
  A) Okun's Law; four; below
  B) Keynes' Law; two; below
  C) Phillip's Law; four; above
  D) Say's Law; two; above
  E) Okun's Law; two; below

Question 2

The figure above shows the loanable funds market. If the real interest rate is 10 percent, then
 
  A) there is a shortage in the loanable funds market.
  B) the government must intervene in order to prevent a credit crisis.
  C) the interest rate must increase.
  D) savers will exit the market because of the high opportunity cost of saving.
  E) there is a surplus in the loanable funds market.

[huda]

Answer to Question 1

E

Answer to Question 2

E