Homework Answers
Ans: 10.0%
Explanation:
According to Okun's law
2(Present unemployment rate - natural unemployment rate) = [(Potential GDP - Actual GDP) / Ptential GDP] * 100
2(Present unemployment rate - 3%) = [(465 - 400) / 465] * 100
2*Present unemployment rate - 6% = 14%
2*Present unemployment rate = 14% + 6% = 20%
Present unemployment rate = 20% / 2 = 10%
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