according to okuns law if the unemployment rate goes from 4% to 6% what will be the effect on the gpd?

Question

Social Studies

Leila Goodman

7 June, 13:00

according to okuns law if the unemployment rate goes from 4% to 6% what will be the effect on the gpd?

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Answers (2)

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Preston · Answer 1

Answer:it will decrease by 1%

Amara Joseph · Answer 2

According to Okun's Law, if the unemployment rate goes from 4% to 6% the effect on the GDP (gross domestic product) will be a decrease.

When unemployment goes up by 1%, GDP goes down by 2%. The formula is as follows:

2 (unemployment rate - natural unemployment) = (potential GDP - actual GDP) / (potential GDP) x 100