According to Okun's law, how much output (real GDP) was lost in 2009 when the nation's unemployment rate increased from 5.8 percent to 9.8 percent? Instructions: Round your response to one decimal place. %
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- 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%If real GDP growth is -10% then according to Okun’s law, the unemployment rate should be a) increasing by 13 percentage points b) decreasing by 13 percentage points c) increasing by 6.5 percentage points d) decreasing by 6.5 percentage points please show stepsIn Okunland, a country whose economy operates according to Okun's law, real GDP equals $7,520 billion, potential GDP equals $8,000 billion, and the actual unemployment rate is 8 percent. What is the natural rate of unemployment in Okunland? Multiple Choice 11 percent 2 percent 5 percent 6 percent
- The version of Okun's law discussed in class implies that with no change in unemployment, real GDP growth is 3 percent. If the unemployment rate rose by 2 percentage points, Okun's law predicts that real GDP would: a. decreased by 4 percent b. decrease by 2 percent c. increase by 1 percent d. decrease by 1 percentThe 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?Is it ever possible to have zero unemployment in an economy? Why or why not? Explain in details
- Suppose the unemployment rate was 7.4 percent, far above the full-employment threshold (= 5 percent). Instructions: In part a, round your response to two decimal places. In parts b–c, enter your responses as a whole number. a. How many jobs were lost, as a result, in a labor force of 150 million? b. If the average worker produces $100,000 of output, how much output will be lost? c. By how much did GDP per capita decline as a result (310 million people)? Solve this financeSuppose that economy X is at the steady-state unemployment rate with a separation rate of 0.05 per month and a job-finding rate of 0.15 per month, and the labor force was 150 million, how many individuals would lose their jobs each month?Explain, using diagrams where appropriate , ONE way unemployment may be caused in an economy and analyse TWO costs of unemployment to an economy.
- Assume that in a particular year the natural rate of unemployment is 5 percent and the actual rate of unemployment is 9 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?A radio commentator stated that with 10% unemployment rate, 11 million people out of the total population of 110 million are unemployed. Is this statement right or wrong? Why?Which is better? To have eight people unemployed each for one month To have one person unemployed for eight months Explain.