Suppose that in 2011, potential GDP for BloomJack Island is $85,000, real GDP is $75,000, and potential GDP grows at a rate of 2% per year.

a)If real GDP is $78,000 in 2012, using Okun's law, calculate the cyclical rate of unemployment.

b)If real GDP is $83,000 in 2013, using Okun's law, calculate the cyclical rate of unemployment.

c)Sketch a curve to represent Okun's law, depicting the two points calculated in parts a and b.