Suppose the unemployment rate is 9%, the natural rate of unemployment is 4.5%, and Okun’s scalar has an absolute value of .015. If potential GDP is $20T, what do you expect the actual GDP to be? (Round to nearest $10B)

Q: Identify the following variables as more variable than GDP or less variable than GDP: (1)…

A: In an economy, different variables are influenced by market condition in different ways and in…

Q: Suppose that the natural rate of unemployment is 5.7 percent. If unemployment has for some time been…

A: It is known that Natural unemployment rate is 5.7%. The actual unemployment lies between the range…

Q: If the government wants to reduce unemployment by influencing the level of activity in the economy,…

A: Unemployment is the state of being able to work, actively looking for job, but unable to find any.…

Q: Explain the relationship between real GDP and potential GDP, and between the unemployment rate and…

A: The real GDP is the value of newly- produced goods and services by a nation in a given time, which…

Q: Identify the questions that are answered by Macroeconomics from the following. a. All of the options…

A: Macroeconomics deals variables like  Read GDP Unemployment rate Inflation  Productive capacity of…

Q: Natural rate of output is equal to the amount of real GDP when the economy is at the: a) Natural…

A: Natural rate of output is related with natural rate of employment.

Q: What do you expect about the unemployment rate and inflation rate when we have the actual level of…

A: Actual level of output refers to the production of goods and services that are actually produced in…

Q: If a Phillip curve shows that unemployment is low and inflation is high in the economy, then that…

A: Phillip Curve is a economic model that shows the inverse relationship between unemployment and rate…

Q: unemployment

A: The workforce cooperation or participation rate is the quantity of people in the workforce as a…

Q: If the number of people classified as unemployed is 20,000 and the number of people classified as…

A: Unemployment rate refers to the proportion of individuals United Nations agency area unit currently…

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: Which of the following policies would Keynesian economists recommend to help lower the rate of…

A: Keynesian Economics suggests that there should be active government intervention to correct the…

Q: The shortfall between actual real GDP and potential GDP a. decreases as the unemployment rate rises.…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: The shortfall between actual real GDP and potential GDP a decreases as the unemployment rate rises…

A: The percentage of non-employed workers in labor force is called unemployment rate.

Q: Suppose that the unemployment rate is 10%, the total working age population is 100 million, and the…

A: Number of Employed worker = Labour Force - Number of unemployed. Given  Unemployment Rate = 10%…

Q: Suppose that the employment rate is 55.0% and unemployment rate is 5.0%. What is the participation…

A: The participation rate is the percentage of the total population employed and actively looking for…

Q: Consider an economy with the following data:   Employed = 891 million Unemployed = 9 million…

A: Unemployment Rate = Total Unemployed / Total Labor Force * 100 Total Labor Force = Total Employed +…

Q: A low unemployment rate, between 2 and 7%, may be considered full employment. True or false

A: Unemployment: Any individual who is willing and able to work at the existing wage rate but couldn't…

Q: Suppose an economy is given by the​ following: Population​ = 221 million Labor force​ = 117 million…

A: According to the question above, it is given that : Population​ = 221 million Labor force​ = 117…

Q: Suppose the population is 300 million people, the labor force is 200 million people, the number of…

A: Here, given information is, Population: 300 million Labor force: 200 million Employed: 185 million…

Q: Which of the following is best represented by the Circular Flow Diagram? A) Growth equals Inflation…

A: Circular flow of diagram shows how households sector provides factors of production to the business…

Q: act as automatic stabilisers

A: Unemployment means  people who come under a specific age and are  willing to do work  they are not…

Q: Is it ever possible to have zero unemployment in an economy? Why or why not? Explain in details

A: Economic growth and unemployment are the two most important economic variables. All the policies and…

Q: Suppose that the labor force in the Canary Islands is 82,452. There are also 1,631 stay-at-home…

A: The labor force is the sum of employed and unemployed people.  The unemployment rate measures the…

Q: The price level was listed as 100 in 2010 and in 2020 was listed as 115. If a person's salary is…

A: Inflation rate expresses the average variation in the price of all commodities and services during…

Q: .Real GDP is considered a ____ varia

A: In economic real variables are those which are adjusted for price levels/inflation and their value…

Q: In an economy with an adult population of 120 million, total employment of 90 million, and…

A: A person is said to be a unemployed when he or she is unable to find job at market prevailing wage…

Q: Is zero unemployment desirable? explain

A: >Unemployment can be categorized in three different ways: 1. Frictional Unemployment: This type…

Q: Which of the following are true of an economy operating with a negative GDP gap? Check all that…

A: Gross Domestic Product (GDP at MP): This is the gross market value of all the final commodities…

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

A: Okun's law stated that for every 1% fall in the unemployment rate in an economy, the GDP will rise…

Q: Suppose the real GDP of an economy is $520 billion dollars and its unemployment rate is 8%. If the…

A: The gap between actual rate of unemployment and natural rate of unemployment is (8% - 5%) = 3%. We…

Q: Official unemployment rates may underestimate the true rate of unemployment because the official…

A: GIVEN DATA    The official unemployment rate may underestimate the true rate of unemployment because…

Q: To say that solving the unemployment problem requires government intervention is consistent with the…

A: To combat inefficiencies, governments intervene in markets. Resources are correctly allocated to…

Q: If the price indices were 100 for 2012 and 150 for 2020, and nominal GDP were Php360 billion for…

A: 2012-100 2020-150

Q: Suppose the real GDP of an economy is $560 billion dollars and its unemployment rate is 8%.If the…

A: here we calculate the country potential GDP by using the given data , so the calculation of the…

Q: Inflationary GDP is the amount by which equilibrium real GDP falls short of the full employment…

A: Inflationary gap is said to exists when the aggregate expenditure exceeds the full employment real…

Q: Which of the following statements are correct? Select one or more: a. To find GDP at constant…

A: OPTION B IS WRONG BECAUSE  A price index for a given year is determined as the cost of a bundle of…

Q: If the unemployment rate is approximately 6.1% then it must be true that there is…

A: An economic issue in the country is that people do not have jobs and also do not actively look for…

Q: The version of Okun's law discussed in class implies that with no change in unemployment, real GDP…

A: Real GDP refers to the total market value of goods and services produced and sold in the economy…

Q: Given an economy with an unemployment rate of 7%,  GDP growth of 1% and an inflation rate of 1%,…

A: There are four phases of business cycle Expansion Peak Contraction Trough

Q: If the number of employed persons in a country equals 24 million, the number of unemployed persons…

A: The unemployment rate refers to the inability of an economy to generate employment for its people…

Q: What is likely to be the impact of efforts towards reducing unemployment on the production potential…

A: So when the economy of any country moves towards the level of full employment it totally removes the…

Q: Which of the following is a measure of domestic output (production)?   Group of answer choices a)…

A: In an economy, domestic output refers to the total output generated within the economic boundaries…

Q: A decrease in unemployment (is/is not) a contributing factor to increasing real GDP because…

A: Unemployment refers to those people who are employable and wants to get a job but is unable to get a…

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: A person who has been field is not considered unemployed? True or False

A: When an individual does not work full-time or takes a job that does not match their actual training…