The Bureau of Labor Statistics reported that in June 2010, the unemployment rate in the United States was 9.4 percent. In June 2015, the BLS reported an unemployment rate of 5.3 percent.

a. According to Okun’s Law, by how much would GDP need to increase for the unemployment rate to decrease from the June 2010 rate to the rate of June 2015?
b. In June 2010, the annual GDP growth rate in the United States was 2.4 percent. At this rate of growth, how long does Okun’s Law predict it would take for the economy to reach the unemployment rate of June 2015? Based on the unemployment rates and annual GDP growth rate listed above, how accurate was the prediction?