For the economy described in Problem 3: (L03)
a. Construct a table like Table 22.1 to find short-run equilibrium output. Consider possible values for short-run equilibrium output ranging from 8,200 to 9,000.
b. Show the determination of short-run equilibrium output for this economy using the Keynesian-cross diagram.
c. What is the output gap for this economy? If the natural rate of unemployment is 4 percent, what is the actual unemployment rate for this economy?