If a country's natural unemployment rate is 5.5 percent and its actual unemployment rate is 3.5 percent, what is its cyclical unemployment rate? ___________percent
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a) If a country's natural
Instructions: Enter the value for the output gap as an absolute number.
(PLEASE ANSWER THIS PART B)
b) According to Okun's law, this country would have an expansionary output gap of _________percent.
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- Suppose 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 unemploymentAssume that the equilibrium level of Y (or real GDP) is $10 trillion, the actual unemployment rate is 4.0%, and the natural unemployment rate is 5%. Okun's Law tells us that we should increase Y by 1.6% O increase Y by 2.0% decrease Y by 1.6% decrease Y by 2.0%Instructions: Enter your answer as an absolute number. According to Okun's law, if a country's recessionary output gap grows by 5 percent, then its cyclical unemployment rate will increase by percent.
- 12 ants 01:23:17 a) If a country's natural unemployment rate? Instructions: Enter the value for the output gap as an absolute number. b) According to Okun's law, this country would have a recessionary output gap of unemployment rate is 5 percent and its actual unemployment rate is 6.5 percent, what is its cyclical percent percent.Instructions: Enter your answer as an absolute number. According to Okun's law, if a country's expansionary output gap grows by 1 percentage points, then its cyclical unemployment rate wi (Click to select) by percentage points. decrease increaseIf 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 steps
- 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. %Suppose that the natural rate of unemployment in a particular year is 5 percent and the actual rate of unemployment is 9 percent. What will be the amount of cyclical unemployment and the size of the GDP gap in percentage-point terms, according to Okun law? Select one: a. 45 % cyclical unemployment, 9/5 percent GDP gap b. 4 % cyclical unemployment, 8 percent GDP gap c. 5 % cyclical unemployment, 10 percent GDP gap d. 5 % cyclical unemployment, 9 percent GDP gapQuestion Two (a) Determine whether each of the following statements is True, False or Uncertain. Give a brief explanation for your choice. 1. When the economy goes into a recession, there's an increase in frictional unemployment. ii. According to Okun's law, if full-employment output is $5,000 billion, then each percentage point of unemployment sustained for one year reduces output by $50 billion. llI. If the number of employed workers in a country decreases, the unemployment rate in the country will increase. lV. An increase in the duration of unemployment should be linked to a decrease in flows in and out of unemployment if one is to keep unemployment constant.
- 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%True/False/Uncertain Unemployment can arise in an economy even when there is no imbalance between the number of available workers and number of available jobs; and there is no mismatch between the skills of available workers and skill requirements of available jobs. The long-run labor demand is more elastic than the short-run labor demand as firms can adjust both capital and labor in the long-run; and they can fully take advantage of changes in the price of labor. The answers should be very clear and detailed, THANK YOU!!!ces 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. %