Question
The estimated Okun's law for an economy is given by _ _(1) = 0.4(_() 3%) where _ and _() are respectively unemployment rate and growth
The estimated Okun's law for an economy is given by _ _(1) = 0.4(_() 3%) where _ and _() are respectively unemployment rate and growth rate of output at year .
What growth rate of output leads to an increase in the unemployment rate of 1% per year? How can the unemployment rate increase even though the growth rate of output is positive?
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Principles of Economics
Authors: N. Gregory Mankiw
8th edition
1305585127, 978-1305971493, 978-1337516860, 1337516864, 978-0357539200, 978-1305585126
