What is the difference?
2 answers:
You might be interested in
Answer:
The GDP gap is 9 % when there is 4.5 % unemployment.
Step-by-step explanation:
The statement shows a reverse relationship, where an increase in unemployment is following by decrease in potential GDP and can be translated into the following rate:
The GDP gap at a given increase in unemployment can be estimated by the following expression:
Where:
- GDP gap-unemployment increase rate, dimensionless.
- Increase in unemployment rate, measured in percentage.
- GDP gap, measured in percentage.
If and
, the GDP gap is:
The GDP gap is 9 % when there is 4.5 % unemployment.
If the "problem of 3 and a number " is multiplying:
If it's about adding:
Scenario A: If it's 3 and z, then that means it's 3, and we're adding 4, so it's
(make sure to put () around the 3
!)
Scenario B: If 3 and z is also 3+, then the equation is
(also use () on this too!)