5 Suppose that the natural rate of unemployment in a particular year is 6 percent and the actual rate of unemployment is 7 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? Instructions: Enter whole numbers for your answers below. GDP gap = 96 Forgone output = $ billion 6 If the CPI was 110 last year and is 132 this year, what is this year's rate of ination? Instructions: Round your answer to two decimal places. :I 95 In contrast, suppose that the CPI was 110 last year and is 'IOE this year. What is this year's rate of ination? Instructions: Round your answer to two decimal places. :|% What term do economists use to describe this second outcome? {Click to sale V 7 How long would it take for the price level to double if ination persisted at the following percentages? (Instructions: Round your answers to one decimal place.} a. 8.?5 percent per year: years b. 1.25 percent per year: years c. 135 percent per year: |:| years