According to Okun's law,if output grew 7% and full-employment output rose 5%,what would be the change in the unemployment rate?

Question

Quizplus · Accepted Answer

Okun's law states that for every 2% increase in output above potential output (full-employment output), the unemployment rate will decrease by 1 percentage point. Therefore, if output grew 7% and full-employment output rose 5%, the gap between actual output and potential output would be 2%, resulting in a decrease in unemployment rate by 1 percentage point.

According to Okun's Law,if Output Grew 7% and Full-Employment Output