According to Okun's law,when cyclical unemployment increases from 1 to 2%,the output gap increases from ________%.

Name: According to Okun's law,when cyclical unemployment increases from 1 to 2%,the output gap increases from ________%.
Brand: Quizplus
Rating: 4.8 (47 reviews)

Question

Quizplus · Accepted Answer

Okun's law suggests that for every 1% increase in cyclical unemployment, a country's GDP will be roughly an additional 2% lower than its potential GDP. Therefore, if cyclical unemployment increases from 1% to 2%, the output gap would increase from -2% to -4%.

According to Okun's Law,when Cyclical Unemployment Increases from 1 to 2%,the