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29 September, 12:52

Okun's Law states that for every 1% increase in unemployment, there is a 2% decrease in potential GDP. This creates a GDP gap. What is the GDP gap at 11% unemployment? A) 22% B) $22 C) 33%

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  1. 29 September, 13:21
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    1/2*11/x

    1x=22

    x=22

    So the answer is A) 22%
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