Imagine a new technology emerges, allowing for increased productivity and driven U.S real GDP growth from 2 % to one year to 3% in the next year.

5. Imagine a new technology emerged, allowing for increased productivity and driving U.S. real GDP growth from 2 percent one year to 3 percent in the next year. a. How will this change in the growth rate of GDP affect unemployment? Use Okun's Law to generate a numerical estimate. b. Use the real business cycle approach to explain how the new technology could affect both unemployment and GDP. Why might this new technology lead to higher unemployment than we estimated using Okun's Law