1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sergejj [24]
3 years ago
7

Suppose that the natural rate of unemployment in a particular year is 4 percent and the actual rate of unemployment is 7 percent

. instructions: enter your answers as whole numbers.
a. use okun's law to determine the size of the gdp gap in percentage-point terms.

b. if the potential gdp is $500 billion in that year, how much output is being forgone because of cyclical unemployment?
Business
2 answers:
uranmaximum [27]3 years ago
4 0

WHY ARE YOU ASKING ABOUT UNEMPLOYMENT? ARE YOU SELF AWARE YOU DON'T HAVE A JOB JOOOOOHN? HMPH SO SLOW FOR MAKING UNEMPLOYMENT INTO THE WIND OF RETURDED NESS

koban [17]3 years ago
4 0

Answer:

a. The GDP gap is: 6%

b. The forgone output is: $30 billion

Explanation:

GDP (gross domestic product) is the output produced within a country in a given time period. Okun's law establishes an inverse empirical relationship between unemployment and losses in productivity of a country. In terms of output, Okun's law states that for every percentage increase in cyclical unemployment, a country's potential output is lowered by 2%. Cyclical unemployment is the difference between the natural unemployment rate and the actual unemployment rate.

In this scenario, the natural rate of unemployment is 4% and the actual rate is 7%. Therefore, unemployment due to business cycle fluctuations is: 3% . Since the output gap is double the percentage increase in unemployment, the output or GDP gap is 6%. The dollar amount of the GDP gap given the $500 billion potential GDP is (0.06 * 500) = $30 billion

You might be interested in
According to hofstede's dimensions of cultural personality, cultures that are __________ are assertive and competitive.
ra1l [238]

<span>After thorough researching, according to Hofstede's dimensions of cultural personality, cultures that are masculine are assertive and competitive. The correct answer to the following given statement above is masculine. Masculine refers to the characteristics or attributes that have a connection with boys or men.</span>

3 0
3 years ago
A company has $4,500 in its Revenue account at the end of a period. The expenses are as follows: Rent, $750; Utilities, $150; Sa
Alik [6]
C $975 as you minus rent etc from the revenue
3 0
3 years ago
Read 2 more answers
The U.S. government decides that the incomes of dairy farmers should be maintained at a level that allows the traditional family
luda_lava [24]

Answer:

$2.8 billion per year

Explanation:

Currently the amount of surplus milk in the US is really high since the demand per capita for milk has decreased by 40% in the last 50 years. Excess milk is turned into cheese since it doesn't last very long, and the current amount of surplus cheese is 1.4 billion pounds.

If yous need on average 4 pints of milk per pound of hard cheese and 2 pints per pound of soft cheese, that means that the total surplus milk production is between 2.8 and 5.6 billion pints.

If the government is going to purchase that excess milk, then it is going to need at least $2.8 billion per year.

5 0
3 years ago
Strategic plans translate tactical plans into specific goals and actions for small units of the organization and focus on the ne
alekssr [168]
False it’s operational plans
7 0
3 years ago
A corporation's legal capital:
Fantom [35]

Answer: d. Is established to protect the corporation's creditors.

Explanation:

A corporation's legal capital is the part of a company's equity that absolutely cannot be allowed to leave the company. It is illegal to distribute them as dividends or any other means.

The purpose of this is to ensure that the creditor's rights to assets in the company are protected in the event that some mishap should befall the company.

3 0
3 years ago
Read 2 more answers
Other questions:
  • When managers are engaged in problem solving, there are several steps they should go through in order to prevent themselves from
    6·1 answer
  • The production team of Widget Corp., a furniture manufacturer, has determined the amount of wood, metal, fabric, labor hours, ca
    12·1 answer
  • Microsoft stock price peaked at 6118% of its IPO price more than 13 years after the IPO† Suppose that $15,000 invested in Micros
    14·1 answer
  • Hamish Life, an insurance company, defines the difference in pay between an entry-level recruiter and an entry-level assembler,
    11·1 answer
  • Skysong Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are requir
    5·1 answer
  • Why do you think presidents must take an oath?
    9·1 answer
  • When a taxpayer rents a residence for part of the year, the residence is not eligible as a qualified residence for the home mort
    15·1 answer
  • Many executives own shares in the companies they manage and are also in high tax brackets. When faced with the choice between de
    8·1 answer
  • Ezmerelda jewelers has a marginal tax rate of 32 percent and an average tax rate of 20.9 percent. if the firm owes $34,330 in ta
    15·1 answer
  • If the money supply has increased by 3 percent, nominal income has risen 5 percent and the price level has risen by 1 percent, w
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!