Neco 2025 Economics Question 21

Practice objective / multiple choice question 21 from the 2025 Neco Economics examination.

Neco 2025 Economics Objective / Multiple Choice Medium Difficulty
Question 21 NECO • 2025 • ECONOMICS • objective

The economy has a total unemployment rate of 12% and a natural rate of unemployment of 6%. According to Okun's law, each 1% point of cyclical unemployment above the natural rate reduces real GDP by 2% relative to potential output. If the actual real GDP is \(15\) trillion naira, calculate the economy's potential GDP (in trillion naira) rounded to two decimal places.

Answer Options

A. 17.50
B. 16.95
Correct Answer C. 17.05
D. 16.80
Correct Answer
C
Correct Option:
17.05

About This Question

This is Neco 2025 Economics Question 21. It is one of the objective questions from the 2025 Neco Economics examination.

Difficulty level: Medium .

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