Problem
In a typical recession, the unemployment rate rises 2 1 2%. Assume that at full employment, the unemployment rate is 4 1 2%, and it rises to 7% by the end of the recession. Typically it takes the economy about three years to return to full employment. Using the ‘‘Okun's Law'' approximation, how fast would the economy be growing during that part of the expansion phase?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.