15. What is Okuns law? If the unemployment rate increases by 2 percentage points between this year...

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15. What is Okun’s law? If the unemployment rate increases by 2 percentage points between this year and next year, by how much will output change during the same period? Assume that the natural unemployment rate and full-employment output are constant. Use the form of Okun’s law in Eq. (3.6).

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Macroeconomics Global Edition

ISBN: 978-1292318615

10th Edition

Authors: Andrew Abel ,Ben Bernanke ,Dean Croushore

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