Use the variable “Unemployment Rate: Aged 15 and Over: All Persons for Canada, Seasonally Adjusted” (available at this link) to compute the actual change in the unemployment rate in Canada during 2019. Does Okun’s law hold in the Canadian data for 2019? Explain your answer.

 

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Canada (map) Unemployment rate5 Both sexes 15 years and over Estimate Reference period Seasonally adjusted Percentage December 2018 5.7 January 2019 5.8 February 2019 5.8 March 2019 5.7 April 2019 5.7 May 2019 5.4 June 2019 5.6 July 2019 5.7 August 2019 5.7 September 2019 5.5 October 2019 5.6 November 2019 5.9 December 2019 5.6 January 2020 5.5 February 2020 5.6 March 2020 7.8 April 2020 13.0 May 2020 13.7 June 2020 12.3 July 2020 10.9 August 2020 10.2 Canada (map) Unemployment rate5 Both sexes 15 years and over Estimate Reference period Seasonally adjusted Percentage December 2018 5.7 January 2019 5.8 February 2019 5.8 March 2019 5.7 April 2019 5.7 May 2019 5.4 June 2019 5.6 July 2019 5.7 August 2019 5.7 September 2019 5.5 October 2019 5.6 November 2019 5.9 December 2019 5.6 January 2020 5.5 February 2020 5.6 March 2020 7.8 April 2020 13.0 May 2020 13.7 June 2020 12.3 July 2020 10.9 August 2020 10.2

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a Real GDP growth rate 2019 00204 204 b According to the Okuns Law 2 increase in GDP 1 dec... View the full answer