00:03
The unemployment rate is the percentage of people unemployed in the labor force.
00:10
Unemployment in the country affects other variables of the country such as growth and output.
00:17
Okun's rule of thumb states that unemployment and output are related to each other.
00:30
It states that a 1 % increase in the unemployment unemployment rate rates to a 2 % decrease in the countries and vice versa.
01:19
If n -a -i -r -u, which is non -accelerating inflation rate of unemployment, is 5 % which implies a decrease in the unemployment, a decrease in the unemployment.
01:48
Rate by 2 % since given unemployment rate is 7 % and n -a -i -r -u is 5%.
02:01
Therefore 7 % minus 5 % is 2 % if unemployment rate reduces by 2 % the gdp will increase by the gdp will increase by 4 % hence the new gdp will be equals to 4 ,000 into 4 upon 100 plus 4 ,000 so this is equals to 160 plus 4 ,000 is equals to 4 ,060 is equals to 4 ,060...