Okun's law says that a country's gross domestic product (GDP) must grow at about a 4% rate for one year to achieve a 1% reduction in the rate of unemployment.
Option D is correct.
Since, According to Okun's law a country's gross domestic product (GDP) must grow at about a 4% rate for one year to achieve a 1% reduction in the rate of unemployment.
So, if the unemployment rate goes from 6% to 2%, that is reduce by 4%
Therefore, GDP is increase by 4(4 %) = 16 %
Thus, most appropriate answer is option D, that is GDP will increase by 11% .
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