According to Okun's law, if the unemployment rate goes from 2% to 5%, what will be the effect on the GDP?

2 answers:

5 0

Okun was a professor at Yale who studied relationship between unemployment and productivity. He observed that for the US,w<span>hen unemployment rises by 1%, then GDP is expected to fall by 2%.</span>

So when unemployment goes from 2% to 5%, the GDP will fall by (5-2)*2 = 6%

34kurt3 years ago

3 0

According to this law, when unemployment goes up by 1%, GDP drops by 2%. In the question, unemployment rate goes from 2% to 5%, meaning unemployment goes up by 3%, so the GDP drops by 6%. Thus the effect is a drop in GDP by 6%.

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2 years ago

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The equation in the given standard form is $(x+10)^2+(y+6)^2=5^2$

<h3>Equation of a circle</h3>

The standard equation of a circle is expressed as:

$(x-a)^2+(y-b)^2=r^2$

Given the equation $x^2 + y^2 + 20x + 12y + 111 =0$

Group the function to have:

$(x^2 +20x)+(y^2+ 12y) + 111 =0$

Complete the squares to have:

$(x^2 +20x)+(y^2+ 12y) + 111 =0\\(x^2+20x+10^2-10^2)+(y^2+12y+6^2-6^2)+111=0\\(x+10)^2+(y+6)^2 -100-36+111=0\\(x+10)^2+(y+6)^2-25=0\\(x+10)^2+(y+6)^2=25\\(x+10)^2+(y+6)^2=5^2$