If the natural unemployment rate is 4 percent and potential GDP is $30 billion, then according to Okun's Law, when the unemployment rate falls to 3 percent, real GDP
A) decreases to $29.4 billion.
B) first decreases by 4 percent and then increases by 4 percent.
C) increases to $60 billion.
D) increases to $30.6 billion.
E) remains constant at $30 billion.
D
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