The economy of Omega operates according to Okun's law. Omega is currently
experiencing a recessionary gap of 2% of potential GDP. If the natural rate of
unemployment equals 6 percent, what is the actual rate of unemployment in Omega?
1
Expert's answer
2020-11-30T15:56:37-0500
The GDP is 2% below, meaning that the unemployment rate is 1% above the natural rate of employment.
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