A water tank is being drained at a steady rate. The initial level of the water in the tank was 5.5 feet. The graph below shows t
he water level over time as the tank is drained
2 answers:
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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.
The 
in the denominator is missing in the second expression. It should be
This follows from
This follows from