Q3) Suppose the Okun'e law is given by

u t - u t-1 = -0.4(g yt - 3%)

Where variables are as defined in class.

1.What is the output growth needed to result in reducing unemployment by 1% in a year.

2.What is the output growth needed to reduce unemployment by 2% over the next 4 years.

3.what is your interpretation of the 3% in Okun's law above?