Neco 2021 Economics Question 28
Practice objective / multiple choice question 28 from the 2021 Neco Economics examination.
The potential real GDP growth rate of an economy is \(5\%\) per annum, but the actual real GDP growth in a year is only \(2\%\). According to Okun's law, a 1\% shortfall in output relative to potential raises the unemployment rate by \(2\) percentage points. If the unemployment rate at the beginning of the year was \(8\%\), calculate the unemployment rate at the end of the year.
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About This Question
This is Neco 2021 Economics Question 28. It is one of the objective questions from the 2021 Neco Economics examination.
Difficulty level: Medium .
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