Question
Suppose that in 2013, potential GDP in the nation of Octavia is $85,000, real GDP is $75,000, and potential GDP grows at a rate of
Suppose that in 2013, potential GDP in the nation of Octavia is $85,000, real GDP is $75,000, and potential GDP grows at a rate of 2% per year.
i. If real GDP is $78,000 in 2014, using Okun's law, calculate the cyclical rate of unemployment.
ii. If real GDP is $83,000 in 2015, using Okun's law, calculate the cyclical rate of unemployment.
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Managerial Economics Applications, Strategies and Tactics
Authors: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
13th edition
1285420926, 978-1285962399, 978-1285947853, 1285947851, 978-1285420929
