Q. 1Suppose the real GDP of an economy is $480 billion dollars and its unemployment rate is 7%. If the natural rate of unemployment is estimated at 4%, what is the value of the country's potential GDP (LAS) in billions of dollars?

Q. 2 Use the following information: T = 100 + 0.2Y

G = 500

IM = 100 + 0.15Y

X = 550

a. What is the trade balance (X - IM) when the government's budget is balanced?

b. What is the government's budget balance (T - G) when the trade balance is zero?