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C=1,800+0.6Y Ip=900 X=100 M=0.3Y, and assume that the economy is at its short-run equilibrium. You are also told that the actual rate of unemployment in
C=1,800+0.6Y Ip=900 X=100 M=0.3Y, and assume that the economy is at its short-run equilibrium. You are also told that the actual rate of unemployment in the economy is 18%, the frictional rate of unemployment is 2%, the structural rate of unemployment is 6% and the cyclical rate of unemployment is 10%. Using Okun's Law with beta equal to 2 what is the level of potential output in the economy to the nearest whole number? a. 4,000 b. 5,263 . 8,750 d. None of the other answers are correct e.5,000
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