Suppose the population of a country is 2.2 million, the labor force is 1,600,000, and 1,200,000 are employed. Assume that full employment occurs at a 4 percent unemployment rate at a real GDP level of $100 billion.

a-How can the outsourcing of jobs cause production possibilities to expand?

b-Based on the information above, what is the unemployment rate?

c-Based on the information above, how many more members of the labor force must find jobs for the economy to achieve full employment?

d-Based on the information above and the revised version of Okun's Law, how much potential GDP has been lost because the economy is not at full employment?