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Unformatted text preview: C) It rose by $600 D) It rose by $2,000 5. If the natural rate of unemployment was 6 percent, the current unemployment rate was 12 percent, and the nominal GDP was $4,000 billion, then according to Okun's law the economy would have sacrificed: A) $240 billion in potential output B) $480 billion in potential output C) $700 billion in potential output D) $840 billion in potential output 6. Only two resources, capital and labor, are used in an economy to produce an output of 600 million units. If the total cost of capital resources is $300 million and the total cost of labor resources is $100 million, then the per-unit production costs in this economy are: A) $0.67 million B) $1.50 million C) $2.00 million D) $3.00 million...
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- Spring '10
- Inflation, price level, potential output