12.0 Overall Unemployment Rate 10.0 Natural Unemployment Rate 60 4.0 2.0 00 蛋 The above graph shows the overall and natural rates of unemployment for the U.S. over the period 1990 through 2019. Which of the following can you conclude for sure on the basis of this graph? O There was no frictional unemployment during this period. O In 1999 cyclical unemployment was positive. O In 2011 cyclical unemployment was negative. O In 2019, real GDP was greater than potential GDP. O In 2019, real GDP was smaller than potential GDP. 2011 6002 1661 6861 Percent

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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E1

12.0
-Overall Unemployment Rate
10.0
- Natural Unemployment Rate
8.0
6.0
4.0
2.0
0.0
The above graph shows the overall and natural rates of unemployment for the U.S. over the period
1990 through 2019. Which of the following can you conclude for sure on the basis of this graph?
O There was no frictional unemployment during this period.
O In 1999 cyclical unemployment was positive.
O In 2011 cyclical unemployment was negative.
O In 2019, real GDP was greater than potential GDP.
O In 2019, real GDP was smaller than potential GDP.
Percent
Transcribed Image Text:12.0 -Overall Unemployment Rate 10.0 - Natural Unemployment Rate 8.0 6.0 4.0 2.0 0.0 The above graph shows the overall and natural rates of unemployment for the U.S. over the period 1990 through 2019. Which of the following can you conclude for sure on the basis of this graph? O There was no frictional unemployment during this period. O In 1999 cyclical unemployment was positive. O In 2011 cyclical unemployment was negative. O In 2019, real GDP was greater than potential GDP. O In 2019, real GDP was smaller than potential GDP. Percent
11
10
2.
Labor
Suppose that people in this country become optimistic about the future state of the economy and,
as a result, begin consuming more goods and services. This increase in demand for goods and
services and the resulting increase in demand for labor causes the nominal wage to increase by 25%
and the price level to increase by 150%. The potential GDP in this country equals Yp = 100,000 and
Okun's alpha equals a = 2. What is the value of real GDP?
O 108,000.00
O 106,000.00
O 104,000.00
92,000.00
98,000.00
000'sot
000'Lot
000'901
000'sot
000'POt
000'EoT
000'zot
000'tot
000'00t
000'66
000's6
000'26
000'96
000's6
000'r6
000'E6
000'z6
000't6
000'06
000'68
000'88
000'28
Real Wage
Transcribed Image Text:11 10 2. Labor Suppose that people in this country become optimistic about the future state of the economy and, as a result, begin consuming more goods and services. This increase in demand for goods and services and the resulting increase in demand for labor causes the nominal wage to increase by 25% and the price level to increase by 150%. The potential GDP in this country equals Yp = 100,000 and Okun's alpha equals a = 2. What is the value of real GDP? O 108,000.00 O 106,000.00 O 104,000.00 92,000.00 98,000.00 000'sot 000'Lot 000'901 000'sot 000'POt 000'EoT 000'zot 000'tot 000'00t 000'66 000's6 000'26 000'96 000's6 000'r6 000'E6 000'z6 000't6 000'06 000'68 000'88 000'28 Real Wage
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