According to Okun's Law, when cyclical unemployment increases by one percentage point, the recessionary gap ______ by ______ percentage point(s).

Question

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According to Okun's Law, the recessionary gap, which is the difference between potential GDP and actual GDP, increases by two percentage points for every one percentage point increase in cyclical unemployment.

According to Okun's Law, When Cyclical Unemployment Increases by One