Suppose the natural unemployment rate is 5 percent, the actual ...

[rosent76]

Suppose the natural unemployment rate is 5 percent, the actual unemployment rate is 6 percent, and potential GDP is 5,000 billion. Based on Okun's Law, real GDP is equal to ________ billion.
 
  A) 4,000 B) 4,900 C) 5,900 D) 5,000 E) 5,100

Question 2

Which of the following is a monetary policy goal?
 
  i. keeping the inflation rate low
  ii. attaining maximum employment
  iii. keeping the long-term interest rate at a moderate level
  A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii

[joanwhite]

Answer to Question 1

B

Answer to Question 2

E