For every 1% increase in unemployment, there
is a 2% decrease in potential GDP. This creates
a GDP gap. What is the GDP gap when there is
4% unemployment?

Question

04-10-2022
Mathematics

Answered

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For every 1% increase in unemployment, there
is a 2% decrease in potential GDP. This creates
a GDP gap. What is the GDP gap when there is
4% unemployment?

Sagot :

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