**Problem : **
List 3 costs of unemployment.

**Problem : **
Please explain what is meant by Okun's law.

Okun's law describes the relationship between real GDP and
unemployment. The equation for Okun's law is:

(the percentage change in real GDP) = 3% - 2 * (change in the unemployment
rate).

This equation basically says that real GDP grows at about 3% per year when
unemployment is normal. For every point above normal that unemployment
moves, GDP falls by 2%. Similarly, for every point below normal that
unemployment moves, GDP rises by 2%.

**Problem : **

Using Okun's law, determine the percent change in real GDP if the unemployment rate goes from 8% to 4%.

The equation for Okun's law is (the percentage change in real GDP) = 3% - 2 * (change in the unemployment rate). Using the information given in the problem, we get 3% - 2 * (-4) = 11%.**Problem : **
List the 3 major types of unemployment and the 4 major reasons for
unemployment.

**Problem : **
Find the unemployment rate given that a survey by the BLS reveals 30
people employed 10 people unemployed, and 40 people out of the labor
force.

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