Assume the natural rate of unemplyment in the US economy is 5 percent and the actual rate of unemployment is 12 percent . According to Okuns law the GDP gap as a percentage of potential GDP is

Q: A) What was the unemployment rate? Show your work.   B) What was the labor force participation…

A: Unemployment rate is the percentage of the labor force that is jobless and actively seeking…

Q: Give your opinion to this statement: The problem of unemployment can only be solved by opening as…

A: Unemployment is a situation in which a person who is willing and able (capable) to work do not find…

Q: Present three major arguments of those who believe that IT will result in massive unemployment.

A: Technological growth contributes to industry development, expedites research, and fosters global…

Q: Explain why frictional and structural unemployment are unavoidable in an economy. Examine the…

A: The unemployment is the economic situation in which people are willing to work at the prevailing…

Q: What is the macroeconomic cost of unemployment?   social stress   inflation   national…

A: Unemployment has a direct effect on countrywide production because when people are unemployed, they…

Q: Suppose that the employment rate is 55.0% and unemployment rate is 5.0%. What is the participation…

A: The participation rate is the percentage of the total population employed and actively looking for…

Q: All types of unemployment are natural except one, which is

A: Unemployment refers to a situation when people who look for job and are willing to work at  at the…

Q: Assuming the total population is 100 million, the civilian labor force is 80 million, and 76 million…

A: Unemployment Rate = [(Labor Force - Employed) / Labor Force]*100%

Q: How can seasonal unemployment be alleviated? Should it be alleviated? Why or why not?

A: Seasonal unemployment means a situation when individuals are not having jobs(unemployed) at…

Q: Use the Mortensen‐Pissarides model to explain the consequences of an increase in the separation rate…

A: Job separation rate in reality shows economic shifts. The unemployment rate gets affected by this…

Q: Assume the natural rate of unemployment in the U.S. economy is 5 percent and the actual rate of…

A: Okun's Law is an empirical relationship that describes the inverse relationship between the…

Q: In order to improve the living standards of the people in Philippines after the devastating typhoon…

A: In order to answer the above question, let us first understand some basic concepts:  1. Types of…

Q: Which of the following would be considered High Unemployment? Select all that apply 5% 7% 4% O 10% O…

A: Countries have differences in their population due to which they have differences in the labor force…

Q: Explain the difference between the natural rate of unemployment and the actual rate of unemployment…

A: The objective of this question is to understand the difference between the natural rate of…

Q: Explain any two causes of unemployment in the economy!

A: According to the given question In Simple words we can say that unemployment is generally known to…

Q: Virtually all economists and policymakers agree that, within limits, higher employment is better. If…

A: Higher employment is better for individuals, communities, and the overall economy. It provides…

Q: Video tape (millions per year) A D Fast food meals (millions per year) Which point in the figure…

A: Production possibility frontier shows different combinations of two goods that can be produced with…