Suppose one economist believes the
target rate of unemployment is 4.5 percent while another...

Question

Suppose one economist believes the
target rate of unemployment is 4.5 percent while another believes it is 5.5
percent. Using Okun’s rule of thumb, by how much would you expect their
estimates of potential GDP to differ in a $10 trillion economy?

Bidusha · Accepted Answer

Question
Suppose one economist believes the target rate of unemployment is 4.5 percent while another believes it is 5.5 percent. Using Okun’s rule of thumb, by how much would you expect their estimates of potential GDP to differ in a $10 trillion economy?
Answer
As per Okun's guideline,

Suppose one economist believes the target rate of unemployment is 4.5 percent while another believes it is 5.5 percent. Using Okun’s rule of thumb, by how much would you expect their estimates of...

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