Register
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%
228k views
1 vote
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%

User GeneQ
by
5.7k points

1 Answer

0 votes

1/2*11/x

1x=22

x=22

So the answer is A)22%

User Madusudanan
by
5.7k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.9m questions

7.8m answers

Other Questions

Which type of anxiety plays a key role in many cases of erectile dysfunction?
Mr. Jensen repeatedly complains about the quality and duration of his sleep. He claims that he has difficulty falling asleep and staying asleep, and that he usually wakes up before it is time to get up.
Those rights that are so fundamental that they are outside of the authority of government to refulate are known as
Does the president of israel make all the decisions and rules for the country
Which statement accurately describes the 13 american colonies? a. each colony was started as a business. b. each colony was started as a royal charter. c. each colony ensured that its citizens would be
Link Copied!