katdestined katdestined

15-02-2019
Social Studies

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Okun's Law states that for every 1% increase in unemployment, there is a 2% decrease in potential GDP. This creates a GDP gap. What is the GDP gap at 11% unemployment? A)22% B)$22 C)33%

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nermay7 nermay7

15-02-2019

1/2*11/x

1x=22

x=22

So the answer is A)22%

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