Suppose that the natural rate of unemployment in a, Ask an Expert

Economics

Suppose that the natural rate of unemployment in a particular year is 4 percent and the actual rate of unemployment is 11 percent.

Use Okun’s law to determine the size of the GDP gap in percentage-point terms. If the potential GDP is $500 billion in that year, how much output is being forgone because of cyclical unemployment?

GDP gap = %

Forgone output = $ billion

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91402422

Have any Question?Write your Review or question?

Related Questions in Business Economics

22 subjects are randomly injected with different dosages of

22 subjects are randomly injected with different dosages of insulin (X) and reduction rate in their blood-sugar levels (Y) are recorded. The results are summarized as: ΣX = 132; ΣX 2 = 917; ΣY = 44; ΣY 2 = 348; ΣXY = 4 ...

In the following five scenarios h0 alpha the obtained

In the following five scenarios, H0, α, the obtained probability (p-value), and the true status of H0 are given. Assume that our test statistic follows a standard normal distribution. Do the following: (a) State whether ...

Why is the labor demand for an individual firm in a

Why is the labor demand for an individual firm in a competitive industry more elastic than the labor demand for the entire industry?

Consider the market for small business loans in the context

Consider the market for small business loans. In the context of this market. How adverse selection impact lenders. How does adverse selection impact borrowers? In the context of this market provide 2 things that a lender ...

Explain and discuss the following quotepoliticians can be

Explain and discuss the following quote: "Politicians can be strange. They have been calling for the breakup of firms as diverse as energy companies and tech giants like Microsoft and Google because they believe these co ...

How the manager use the information supposed the

How the Manager use the information "supposed the macroeconomic forecast predict that the economy will be expanding in the near future" in an organization?

In a study of helicopter usage and patient survival among

In a study of helicopter usage and patient? survival, among the 55 comma 55,032 patients transported by? helicopter, 227 of them left the treatment center against medical? advice, and the other 54 comma 54,805 did not le ...

A manufacture makes makes two models of an item model 1

A manufacture makes makes two models of an item. Model 1 which accounts for 89% of unit sales, and model 2, which accounts for 11% of unit sales. Because of defects the manufacture has to replace (or exchange) 11% of its ...

1 a firms marginal rate of technical substitution atm p lm

1) A firm's marginal rate of technical substitution at M P L/M P = 3, and the ratio of prices of labor and capital ,w/r, is 4. a) Is the firm minimizing its cost? Why or Why not? b) What can it do to improve its situatio ...

A manufacturer of cereal has a machine that when working

A manufacturer of cereal has a machine that, when working properly, puts 20 ounces of cereal on average into a box with a standard deviation of 1 ounce. Every morning workers weigh 25 filled boxes. If the average weight ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert