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
Anna007 [38]
3 years ago
5

Refer to the accompanying data, which is for a specific year in a hypothetical economy for which Okun's law is applicable. The a

mount of output being forgone by the economy is
Business
1 answer:
frutty [35]3 years ago
3 0

Answer:

A) $24 billion

Explanation:

Here is the complete question :

Potential Real GDP $200 Billion

Natural Rate of Unemployment- 6 Percent

Actual Rate of Unemployment- 12 Percent

Refer to the accompanying data, which is for a specific year in a hypothetical economy for which Okun's law is applicable. The amount of output being forgone by the economy is

C) $15 billion. D) $18 billion. A) $12 billion. B) $24 billion.

According to Okun's law, a 1% decline in unemployment results in a 2% fall in potential GDP

Decline in unemployment = Actual Rate of Unemployment - Natural Rate of Unemployment

12 - 6 = 6%

decline in output = 6% x 2% = 12%

potential GDP lost = 12% x $200 Billion  = 24 billion

You might be interested in
Phillip deposited $7,775 into a savings account 14 years ago. the account has an interest rate of 4.5% and the balance is curren
Bas_tet [7]
The future amount of an investment with compound interest can be calculated through the equation,

     F = P x (1 + ieff)^n

where F is the future amount, P is the current value of the money, ieff is the effective interest (rate per year), and n is the number of years.

From the equation, all are given except for the effective interest, i. Now, substituting the known values,
  14,398.87 = (7,775) x (1 + ieff)^14

The value of ieff from the equation is 0.044999. 

Since the value of the ieff when translated to percentage is equal to 4.5% as well, the interest rate is compounded yearly. 
3 0
3 years ago
Everyone likes to have Lydia working on their committees because she seems to have the unique ability to consider a variety of o
salantis [7]

Answer:

c. convergent thinking

Explanation:

Convergent thinking is the ability to think quickly about one or two good solutions to a problem, without needing to spend your time and thinking about it. This is especially important when it comes to decision-making processes. This is very different from a different idea, where you come up with a lot of possibilities

7 0
3 years ago
Which of the following statements are TRUE about credit scores?
Andreas93 [3]
I agree with the person above - the correct answer as to which statements are true about credit scores is C. both A and B, which means that c<span>redit scores indeed do reflect how likely individuals are to repay their debts and o</span><span>nly the credit bureaus know exactly how credit scores are calculated.</span>
3 0
3 years ago
Read 2 more answers
Suppose that national income in a country is $300 billion, taxes paid by households is $130 billion, household consumption is $1
zhenek [66]

Answer:

$180 billion

Explanation:

The consumption is an act of spending the money from an income. The marginal propensity to consume is the proportion increase in the amount that a consumer is spending. The savings then decline if the consumption increases. In the given scenario the consumption will not raise even if there is an increase in national income and taxes are kept fixed at previous level. This is because marginal propensity to consume is same.

5 0
3 years ago
A budget is a plan for spending money based on income, expenses and
Butoxors [25]

Answer:

TRUE

Explanation:

budgets are made to help design a plan for spending

4 0
2 years ago
Other questions:
  • What are at least two ways this image my affect demand?
    6·1 answer
  • The following is a listing of some of the balance sheet accounts and all of the income statement accounts for Orange Company as
    5·1 answer
  • Which skills will help you interact well with an interviewer?
    14·1 answer
  • Companies that practice marketing by ________ create offerings and messages that engage consumers rather than interrupt them. Gr
    11·1 answer
  • In a small, closed economy, national income (GDP) is $ 600.00 million for the current quarter. Individuals have spent $ 250.00 m
    5·1 answer
  • Which amendment to the constitution legalized income tax?
    14·1 answer
  • Suppose purchasing power parity holds. If the price level in the United States is 100 dollars per good and the price level in Ja
    14·1 answer
  • HELP ASAP PLS!!! Complete the following sentence.
    6·1 answer
  • Juanita is the sole shareholder of Belize Corporation (a calendar-year S corporation). She is considering revoking the S electio
    12·1 answer
  • What are measurements that evaluate results to determine whether a project is meeting its goals?.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!