Neco Model Questions Vol1 2018 Economics Question 13

Practice objective / multiple choice question 13 from the 2018 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2018 Economics Objective / Multiple Choice Medium Difficulty
Question 13 NECO_MODEL_QUESTIONS_VOL1 • 2018 • ECONOMICS • objective

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?

Answer Options

A. 10
Correct Answer B. 14
C. 16
D. 12
Correct Answer
B
Correct Option:
14

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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