Santiago Chadwick
10/25/2024 · Primary School
According to Okun's law, if the unemployment rate goes from \( 3 \% \) to \( 7 \% \), what will be the effect on the GDP? A. It will increase by \( 11 \% \). B. It will increase by \( 5 \% \). C. It will decrease by \( 11 \% \). D. It will decrease by \( 5 \% \).
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The effect on the GDP is a decrease of \( 11\% \).
Therefore, the correct answer is C.
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