1. If output was $15 trillion, the unemployment rate falls by 3 percentage points, and trend growth is 2%, then using Okuns rule of thumb output:

1. rises to $15.6 trillion.

2. rises to $16.2 trillion.

3. falls to $14.7 trillion.

1. 4. falls to $13.8 trillion.
2. According to Okun's rule of thumb, if trend growth is 2 percent, an increase of the rate of unemployment from 6 percent to 8 percent would be expected to be associated with which of the following income changes?
3. 1. Fall by 4 percent.
   2. Rise by 4 percent.
   3. Fall by 2 percent.
   4. Rise by 2 percent.