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12 July, 09:10

According to okun's law if the unemployment rate goes from 3% to 7% what will be the effect on the GDP

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  1. 12 July, 09:18
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    Delta (Y) / Y = 0.03 - 2Delta (u) using USA data = 0.03-2 (0.03-0.07) = 0.03-0.08 = - 0.05 = - 5% So output (GDP) will decrease by 5%
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