Neco Model Questions Vol1 2022 Economics Question 5
Practice objective / multiple choice question 5 from the 2022 Neco Model Questions Vol1 Economics examination.
Okun's law states that \((\text{Potential GDP growth} - \text{Actual GDP growth}) = k\,(U - U_{n})\), where \(U\) is the actual unemployment rate, \(U_{n}\) the natural rate and \(k\) the Okun coefficient. In a certain economy the potential GDP growth is 5 %, the actual GDP growth is 2 %, the natural unemployment rate is 6 % and the Okun coefficient is 2. Find the actual unemployment rate.
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About This Question
This is Neco Model Questions Vol1 2022 Economics Question 5. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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