If Okun's law is U - = - 0.5 (Y - ),and potential output grows at 2% per year,then a recession that causes output to decrease by one percentage point will cause unemployment to increase by ________.
A)1 percentage point
B)1.5 percentage points
C)2 percentage points
D)3 percentage points
E)one-half percentage point

Question

If Okun's law is U -  = - 0.5 (Y -  ),and potential output grows at 2% per year,then a recession that causes output to decrease by one percentage point will cause unemployment to increase by ________.
A)1 percentage point 
B)1.5 percentage points 
C)2 percentage points 
D)3 percentage points 
E)one-half percentage point

Quizplus · Accepted Answer

The Answer of If Okun's law is U -  = - 0.5 (Y -  ),and potential output grows at 2% per year,then a recession that causes output to decrease by one percentage point will cause unemployment to increase by ________.
A)1 percentage point 
B)1.5 percentage points 
C)2 percentage points 
D)3 percentage points 
E)one-half percentage point

If Okun's Law Is U - = - 0