Gce Model Questions Vol1 2022 Economics Question 37

Practice objective / multiple choice question 37 from the 2022 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2022 Economics Objective / Multiple Choice Medium Difficulty
Question 37 GCE_MODEL_QUESTIONS_VOL1 • 2022 • ECONOMICS • objective

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.

Answer Options

A. 45000
B. 55000
Correct Answer C. 50000
D. 60000
Correct Answer
C
Correct Option:
50000

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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