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According to Okun's law, if the unemployment rate goes from 2% to 5%, what will be the effect on the GDP?

Respuesta :

CastleRook
According to this law, when unemployment goes up by 1%, GDP drops by 2%. In the question, unemployment rate goes from 2% to 5%, meaning unemployment goes up by 3%, so the GDP drops by 6%. Thus the effect is a drop in GDP by 6%.

Answer:

it will decrease by 3 percent

Step-by-step explanation:

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