In developing his economic theory, Keynes:
a. Was concerned with how government might change aggregate supply in order to close a GDP gap.
b. Explained how aggregate demand could fail to ensure full employment and might require government spending.
c. Believed that short-run unemployment problems would self-correct in a capitalistic economy, like the United States'.
d. Believed that interest rates had the strongest influence on consumption decisions.
e. Focused his attention primarily on inflation.
Suppose the population of a country is 1,500, and the labor force is 1,000, of which 100 are unemployed. Assume the natural rate of unemployment occurs at a 6% unemployment rate, and Potential GDP for this country is $300,000. Based on Okun's Law, please calculate this country's GDP Gap and Actual GDP.
a. The GDP Gap = $12,000, and Actual GDP = $288,000.
b. The GDP Gap = $24,000, and Actual GDP = $276,000.
c. The GDP Gap = $24,000, and Actual GDP = $324,000.
d. The GDP Gap = $30,000, and Actual GDP = $270,000.
e. The GDP Gap = $60,000, and Actual GDP = $240,000.