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Mathematics, 07.07.2021 03:10 iamhayls
Suppose that the natural rate of unemployment in a particular year is 4 percent and the actual unemployment rate is 13 percent.
Instructions: Enter your answers as a whole number.
a. Use Okun’s law to determine the size of the GDP gap in percentage-point terms.
percent
b. If potential GDP is $500 billion in that year, how much output is forgone because of cyclical unemployment?
$ billion
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Suppose that the natural rate of unemployment in a particular year is 4 percent and the actual unemp...
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