Question 3: What type of unemployment is this? a. Grace who was working as a lumberj ack lost her job because the timber company she works for decided to buy chainsaws . Peter Pan was fired from his job at the Peanut Butter factory because he is being replaced by RoboCop (a highly efficient peanut butter machine) Tom who just graduated from law school, is looking to find his first real job. Shad was laid off from the Quarry because the country is going through a recession The Easter Bunny found out that he was being let go, since Americans have decided not to eat eggs, which are high in cholesterol Sam I Am was laid off after orders for Green Eggs & Ham declined greatly following last year's stock market crash . Mickey Mouse voluntarily quit his job at Disney & has decided that he will seek a job as a truck driver. . Derek was working in construction when the housing bubble burst following the 2008 financial crisis. The demand for new construction declined, and Derek lost his job Question 4: Suppose the natural rate of unemployment is 4.5% and the current unemployment rate is 6%. According to Okun's law, what is the size of the GDP gap? If potential GDP is $1,000 billion, how much output is being lost as a result of the economy being below its potential? Recent data for the US. showed an unemployment rate of 9.5%. Suppose the natural rate at the time was 4.5%. What was the size of the GDP gap? . At that time, GDP was $14,592 billion. What was potential GDP