The economy of Omega operates according to Okun's law. In Omega, potential GDP and real GDP both equal $7 trillion, and the natural rate of unemployment equals 6 percent. What is the actual rate of unemployment in Omega?

Question

Business

Kaleb Chapman

15 July, 03:32

The economy of Omega operates according to Okun's law. In Omega, potential GDP and real GDP both equal $7 trillion, and the natural rate of unemployment equals 6 percent. What is the actual rate of unemployment in Omega?

+3

Answers (1)

Know the Answer?

Conor Hawkins · Answer 1

6.0 percent.

Explanation:

Based on the scenario being described within the question it can be said that the actual rate of unemployment in Omega is that of 6.0 percent. This is mainly due to the fact that the potential GDP and real GDP are both equal, thus making the natural rate of unemployment and actual rate of unemployment also equal.