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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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Answers: 1

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