question archive Suppose the Australian economy is experiencing a contractionary output gap equal to -5 percent
Suppose the Australian economy is experiencing a contractionary output gap equal to -5 percent
Subject:EconomicsPrice: Bought3
Suppose the Australian economy is experiencing a contractionary output gap equal to -5 percent. If the Okun’s law coefficient is assumed to be 2, frictional unemployment is 2 percent, structural unemployment is 3 percent, what is the unemployment rate?
a. 5%
b. 2.5%
c. 7.5%
d. 15%
