According to Okun's Law, if the annual growth rate of real GDP is ...

[joesmith1212]

According to Okun's Law, if the annual growth rate of real GDP is 2.5, the unemployment rate is likely to ________.
 
  A) increase by 0.25 B) decrease by 1 C) increase by 2.5 D) decrease by 0.5

Question 2

At full employment the unemployment rate equals the
 
  A) cyclical unemployment rate.
  B) structural unemployment rate plus the frictional unemployment rate.
  C) structural unemployment rate plus the cyclical unemployment rate.
  D) structural unemployment rate.

[qytan]

Answer to Question 1

A

Answer to Question 2

B