101.The economy of Alpha operates according to Okun's law. In Alpha potential GDP equals $500 billion, actual GDP equals $520 billion, and the natural rate of unemployment is 5%. What is the actual rate of unemployment in Alpha? А. 3% B. 4% C. 5%

101.The economy of Alpha operates according to Okun's law. In Alpha potential GDP equals $500 billion, actual GDP equals $520 billion, and the natural rate of unemployment is 5%. What is the actual rate of unemployment in Alpha? А. 3% B. 4% C. 5%

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter21: Unemployment

Section: Chapter Questions

Problem 6SCQ: Is the increase in labor force participation rates among women better thought of as causing an...

See similar textbooks

Related questions

Q: If real GDP growth is -10% then according to Okun’s law, the unemployment rate should be a)…

A: When scrutiny one amount of your time to consequent, economic process is outlined as a rise within…

Q: Suppose an economy has 10,000 people who are not working but looking and available for work and…

A: The labor market of the economy determines the equilibrium wage rate and the number of individuals…

Q: Using the economic data below, Which statement about unemployment is true? Year GDP in Billions GDP…

A: In an economy, GDP growth implies a situation when an economy produces or generated relatively more…

Q: 1-Which of the following is an example of frictional unemployment? A mother who has gone back to…

A: Let's first learn about frictional unemployment. It is a type of Economy which can even take place…

Q: 3. Suppose the economy has a natural rate of unemployment of 5%. (a) . Suppose short-run output over…

Q: 2. Considering our spending model of the economy, which condition describes a period of high…

A: Hi! thanks for the question but as per the guidelines we can answer only one question at one time.…

Q: 99. In Macroland, a country that operates according to Okun's law, real GDP is $9.6 trillion, the…

A: When the economy is below full employment, the actual rate of unemployment is more than the natural…

Q: The figure belaw shows data points for real GDP growth and the change in the unemployment rate for…

A: Answer: The equation for the line of best fit predicts that unemployment wont change when real GDP…

Q: Price level (2012 = 100) Unemployment rate (percentage) 102 7 103 6 105 5 108 4 112 3 Based on…

A: The unemployment rate is the ratio of the number of unemployed people to the labor force and…

Q: If the natural rate of unemployment is 4.5 percent, the current unemployment rate is 7.6 percent,…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: country with a population of 75 million people there are 19 million children under the age of 15…

Q: _______________________ happens when the economy is producing at its potential and unemployment is…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Suppose there are 50 million persons in the population, 25 million persons in the civilian labor…

A: unemployment meaning person willing to work but dont have here we calculate the unemployed…

Q: ployment

A: Unemployment depicts the individuals who are in turn employable and also actively seeking for a job…

Q: The table below shows unemployment and labor force statistics for an economy. Actual rate of…

A: Part (d) Cyclical unemployment is type of unemployment that is related to the cyclical trends in…

Q: The unemployment rate is 11.5%, the natural rate of unemployment is 7.5%, and the potential rate of…

A: Given information: Current unemployment rate: 11.5% Natural unemployment rate: 7.5% Potential GDP…

Q: QUESTION 2 Refer to the accompanying data, which is for a specific year in a hypothetical economy…

A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…

Q: 26. Given the following macroeconomic data of a hypothetical economy: - number of individuals who…

A: Labor force = employed+unemployed

Q: If real GDP in 2007 dollars is $1200 billion and the unemployment rate is 8.0 percent when the…

A: ANS Okun's Law states that to reduce unemployment by 1% we need to increase real GDP by…

Q: 7. Assuming the total population is 100 million, the civilian labor force is 60 million, and 54…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Refer to the accompanying data, which is for a specific year in a hypothetical economy for which…

A: 1. Labor force = Employed + unemployed = 712 + 88 = 800 Unemployment rate = unemployed / labor force…

Q: The table below shows unemployment and labor force statistics for an economy. Actual rate of…

A: a. Labor force is the total number of people employed or people who are looking for jobs. It does…

Q: In April approx. 22 million people filed for unemployment ins. In March, the labor force was…

A: Given: MPC = 0.5 GDP fall= $1,537,677,600,000 (This is the amount that needs to be increased in…

Q: Assume that in a particular year the natural rate of unemployment is 5 percent and the actual rate…

A: It is given that the natural rate of unemployment is 5% and actual unemployment rate is 9%. Then the…

Q: 1) The natural rate of unemployment is the normal level of unemployment: •that exists without…

A: In an economy, unemployment rate refers to the proportion of total labor force thay in unemployment…

Q: If the natural rate of unemployment is 5.0 percent, the current unemployment rate is 7.3 percent,…

A: Okun's law: - Okun's law shows the relationship between the unemployment rate and the output gap, it…

Q: 1. Place the phases of the Business Cycle in order. The phases (in no particular order here) are:…

A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…

Q: 8. After experiencing a recession for the past two years, the residents of Albernia were looking…

A: The unemployment rate is defined as the proportion of the total labor force (includes both employed…

Q: If the natural rate of unemployment is 3.9 percent, the current unemployment rate is 7.3 percent,…

A: In economics, Okun's law is an empirically observed relationship between unemployment and losses in…

Q: 12. Name the type of unemployment occurring in each of the causes below. (a) Frank recently lost his…

A: Unemployment is a situation where a worker who is willing and able to work is unable to find a job.…

Q: Using the economic data below, Which statement about unemployment is true? Year GDP in Billions GDP…

A: The unemployment rate refers to the fraction of the total labor force that is unemployed. The total…

Q: Minimum wage had been increased from $12.5 in 2013 to $15 in 2014. By examining these variables…

A: Minimum wage is the lowest wage that has to give for the labor. Generally, minimum wage is greater…

Q: Real output in an economy grows by 1.5% but at the same time the level of unemployment increases. 8.…

A: Real output is the market value of all final goods and services produced in the economy in the given…

Q: If the natural rate of unemployment was 4 percent, the current unemployment rate was 5.5 percent,…

A: Given: The natural rate of unemployment was = 4% The current unemployment rate was = 5.5% The value…

Q: p21 2 0.5(u 2 5). "hat is the natural rate of unemployment? raph the short-run and long-run…

A: Soory i dont know a and c but i know b.... Please upload it again by removing attempted one Please…

Q: 2. Suppose you are the governor of Country A and you have observed some changes in your country.…

A: Hey, Thank you for the question. According to our policy, we can only answer up to 3 subparts per…

Q: The table below shows unemployment and labor force statistics for an economy. a: Calculate the size…

A: Since the question you have posted consists of multiple parts, we will answer the first three parts…

Q: 1. Place the phases of the Business Cycle in order. The phases (in no particular order here) are:…

A: Answer- 1) The economy's full employment level is referred to as PEAK. The term "recession" refers…

Q: 7. Assuming the total population is 100 million, the civilian labor force is 60 million, and 54…

A: The unemployment rate is a useful measure of the underutilization of the labor supply. The…

Q: In Macroland, a country that operates according to Okun's law, potential GDP equals $10 trillion,…

A: We have the following information- Potential GDP (P*) = $10 trillion Actual Rate of unemployment…

Q: Complete a table showing the unemployment rate, inflation rate and economic growth rate for 2009 –…

Question

Google is plssalyá =
101.The economy of Alpha operates according to Okun's law. In Alpha potential GDP equals $500
billion, actual GDP equals $520 billion, and the natural rate of unemployment is 5%. What is the
actual rate of unemployment in Alpha?
A. 3%
B. 4%
C. 5%
+ Q
248 / 101

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Is the increase in labor force participation rates among women better thought of as causing an increase in cyclical unemployment or an increase in the natural rate of unemployment? Why?
What term describes the remaining level of unemployment that occurs even when the economy is healthy?
What type of unemployment (cyclical, frictional, or structural) applies to each of the following: landscapers laid off in response to a drop in new housing construction during a recession. coal miners laid off due to EPA regulations that shut down coal fired power a financial analyst who quits his/her job in Chicago and is pursing similar work in Arizona printers laid off due to drop in demand for printed catalogues and flyers as firms go the internet to promote an advertise their products. factory workers in the U.S. laid off as the plants shut down and move to Mexico and Ireland.
The natural rate of unemployment is 6%, and the actual unemployment rate is 9%, Okun's coefficient for this country is 3. If the potential GDP this year is 1600 billion Euros, what amount of output was lost due to unemployment?
Let's assume that the working-age population of a specific country D is 210 million and 120 million people are in the labor force. If 114 million people are considered employed, and 6 million are considered unemployed, what is the rate of unemployment in percentage?
Assuming the equilibrium unemployment rate is 5%, if actual output falls to 5 percentage points below potential output, how would you expect the unemployment rate to change? (Hint: Use Okun’s rule of thumb.)
Assume the unemployment rate is 8.0%. Also, assume that the natural rate of unemployment is 5%. If frictional unemployment is twice that of structural unemployment, then how much is frictional unemployment? Expressed as a whole number: no percentage sign.
If the actual rate of unemployment were 4.2%, while the natural rate of unemployment were 4.8%, what would the cyclical rate of unemployment be? Group of answer choices a) – 4.5% b) 0.4% c) 10% d) – 0.6% e) 4.5%
Suppose 25,000 persons become unemployed. You are given the following data about the length of unemployment spells in the economy:Duration of Spell (in months) Exit Rate1 0.602 0.203 0.204 0.205 0.206 1.00where the exit rate for month t gives the fraction of unemployed persons who have been unemployed t months and who “escape” unemployment at the end of the month.a. How many unemployment-months will the 25,000 unemployed workers experience?b. What fraction of persons who are unemployed are “long-term unemployed” in that their unemployment spells will last five or more months?c. What fraction of unemployment months can be attributed…
According to Okun’s Law, how much must U.S. real GDP grow in 1 year in order for the U.S. unemployment rate to decline by 1.5 percentage points in 1 year? According to Okun’s Law, how much must U.S. real GDP grow in 1 year in order for the U.S. unemployment rate to decline by 1.5 percentage points in 1 year? 6% 7% 5% 4%