According to Okun's Law, for each 1 percentage point that the ...

[SGallaher96]

According to Okun's Law, for each 1 percentage point that the unemployment rate is above the natural unemployment rate, then
 
  A) the inflation rate is greater than the expected inflation rate by 2 percentage points.
  B) real GDP is above potential GDP by 2 percent.
  C) real GDP is below potential GDP by 2 percent.
  D) the real interest rate is below the natural real interest rate by 1 percentage point.
  E) the inflation rate is less than the expected inflation rate by 1 percentage point.

Question 2

The figure above shows the loanable funds market. The equilibrium real interest rate is ________ percent, and the equilibrium quantity of loanable funds is ________.
 
  A) 4; 1.4 trillion
  B) 6; 1.6 trillion
  C) 4; 1.8 trillion
  D) 8; 1.8 trillion
  E) 8; 1.4 trillion

[Joc]

Answer to Question 1

C

Answer to Question 2

B

[SGallaher96]

Gracias!

[lindahyatt42]

Thanks for the timely response, appreciate it