Neco 2018 Economics Question 35
Practice objective / multiple choice question 35 from the 2018 Neco Economics examination.
Okun's law states that a 1 % increase in real GDP growth above the normal growth rate reduces the unemployment rate by 0.5 percentage points. Country Y's normal real GDP growth rate is 4 % per annum and its current unemployment rate is 12 %. If policies raise real GDP growth to 6.5 % for the next year, what will be the unemployment rate at the end of the year? Give your answer to two decimal places.
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About This Question
This is Neco 2018 Economics Question 35. It is one of the objective questions from the 2018 Neco Economics examination.
Difficulty level: Medium .
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