Question

Okun's law states that: A. The gap between output and full-employment output increases by 2% for each 1% that the unemployment rate increases. B. The gap between output and full-employment output increases by 1% for each 2% that the unemployment rate increases. C. The gap between output and full-employment output increases by 3% for each 1% that the unemployment rate increases. D. The gap between output and full-employment output increases by 3% for each 2% that the unemployment rate increases. 

          Okun's law states that:
A. The gap between output and full-employment output increases by 2% for each 1% that the unemployment
rate increases.
B. The gap between output and full-employment output increases by 1% for each 2% that the unemployment
rate increases.
C. The gap between output and full-employment output increases by 3% for each 1% that the unemployment
rate increases.
D. The gap between output and full-employment output increases by 3% for each 2% that the unemployment
rate increases.
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Okun's law states that: A. The gap between output and full-employment output increases by 2% for each 1% that the unemployment rate increases. B. The gap between output and full-employment output increases by 1% for each 2% that the unemployment rate increases. C. The gap between output and full-employment output increases by 3% for each 1% that the unemployment rate increases. D. The gap between output and full-employment output increases by 3% for each 2% that the unemployment rate increases.

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Principles of Economics
Principles of Economics
Gregory Mankiw 8th Edition
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Okun's law states that: A. The gap between output and full-employment output increases by 2% for each 1% that the unemployment rate increases. B. The gap between output and full-employment output increases by 1% for each 2% that the unemployment rate increases. C. The gap between output and full-employment output increases by 3% for each 1% that the unemployment rate increases. D. The gap between output and full-employment output increases by 3% for each 2% that the unemployment rate increases.
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Transcript

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00:01 The two kinds of discussion involves several steps.
00:05 I am providing the textual description after analysis.
00:09 First, graphing.
00:15 Graphing the aggregate -supply anti -mal model.
00:24 First step, aggregate -supply curve.
00:28 Log -rate aggregate -supply curve is vertical at the potential output level.
00:34 Yp is equal to 20.
00:39 In the presence of economies, full employment output in short -term.
00:42 Aggregate -supply curve might be upward slopping.
00:48 Srals might be upward slopping.
00:58 Second step, aggregate -demand curve.
01:03 We have not tried this before.
01:05 Aggregate -demand curve can be assumed as downward slopping.
01:14 Third, log -rate aggregate -supply curve.
01:19 With these assumptions, you can graph as, ad, and oi.
01:23 Ad and as curves intersect...
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