Neco Model Questions Vol1 2018 Economics Question 13
Practice objective / multiple choice question 13 from the 2018 Neco Model Questions Vol1 Economics examination.
Okun's law states that for every 1% increase in the output gap, the unemployment rate rises by 2%. The economy's potential real GDP growth rate is 5% per year, but the actual growth this year was only 2%. If the initial unemployment rate was 8%, what is the unemployment rate at the end of the year?
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About This Question
This is Neco Model Questions Vol1 2018 Economics Question 13. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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