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Use Okun’s Law to calculate the
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- According to Okun's Law, when cyclical unemployment increases from 2 to 4 percent, the recessionary gap increases from ___ percent. a) -4 to -8 b) -2 to -4 c) 0 to 2 d) 4 to 8What two types of federal government policy can mitigate cyclical unemployment? changes in consumption and investment expenditures changes in net factor payments and net exports changes in the money supply and interest rates changes in government expenditures and taxesIn which year did the economy above most likely have an actual unemployment rate equal to the sum of its frictional and structural unemployment rate?
- 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 nominal GDP is $500 billion in that year, how much output is being foregone because of cyclical unemployment?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 percentAt break-even income level, households’ saving is zero. 1) True 2) False Cyclical unemployment is zero if there is no inflation. 1) True 2) False
- Suppose the adult population rises by 4 percent and the labor force participation rate falls by 2 percent. If the number of unemployed decreases by 1 percent, what is the approximate percent change in the unemployment rate? Please don't answer in handwritten ..thankuWhat do you conclude about the link between recession and the varriation in unemployment?increases in a positive GDP gap are associated with increase in the unemployment rate. True Or False Explaine in detail
- Explain why deflation might be considered to be an economic problem.Even an economy that is operating at peak efficiency will have a positive unemployment rate. Economists call this "full employment". Full employment is also known as The natural rate of unemployment frictional unemployment cyclical unemployment Structural unemploymentSuppose that the natural rate of unemployment in a particular year is 5 percent and the actual rate of unemployment is 9 percent . a ) Use Okun's law to determine the size of the GDP gap in percentage - point terms . b ) If the potential GDP is $ 500 billion in that year , how much output is being forgone because of cyclical unemployment
