Gce Model Questions Vol1 2022 Economics Question 37
Practice objective / multiple choice question 37 from the 2022 Gce Model Questions Vol1 Economics examination.
Country B has a labour force of 10 million. In year 1 the unemployment rate is 8 %. In year 2 real GDP grows by 3 % while potential GDP grows by 2 %. Using Okun's law (a 1 % excess‑output growth reduces the unemployment rate by 0.5 % points), estimate the unemployment rate in year 2 and state how many people moved from unemployment to employment between the two years.
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About This Question
This is Gce Model Questions Vol1 2022 Economics Question 37. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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