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f unemployment is 8 percent. Use Okun's law to determine the size of the GDP gap in percentage-point rms. If the nominal GDP is $16,000 billion in that year, how much output is being foregone because of yclical unemployment? kun's law quantifies the size of the negative GDP gap from NRU and actual unemployment rate: ſegative GDP Gap = %. Why? (show your work!) %3D normal GDP is $16,000 billion, then the forgone output in dollar term is $ billion.

f unemployment is 8 percent. Use Okun's law to determine the size of the GDP gap in percentage-point rms. If the nominal GDP is $16,000 billion in that year, how much output is being foregone because of yclical unemployment? kun's law quantifies the size of the negative GDP gap from NRU and actual unemployment rate: ſegative GDP Gap = %. Why? (show your work!) %3D normal GDP is $16,000 billion, then the forgone output in dollar term is $ billion.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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10. Assume that in a particular year the natural rate of unemployment (NRU) is 5 percent and the actual rate of unemployment is 8 percent. Use Okun's law to determine the size of the GDP gap in percentage-point terms. If the nominal GDP is $16,000 billion in that year, how much output is being foregone because of cyclical unemployment? Okun's law quantifies the size of the negative GDP gap from NRU and actual unemployment rate: Negative GDP Gap = %. Why? (show your work!) If normal GDP is $16,000 billion, then the forgone output in dollar term is $ billion.
Transcribed Image Text:10. Assume that in a particular year the natural rate of unemployment (NRU) is 5 percent and the actual rate of unemployment is 8 percent. Use Okun's law to determine the size of the GDP gap in percentage-point terms. If the nominal GDP is $16,000 billion in that year, how much output is being foregone because of cyclical unemployment? Okun's law quantifies the size of the negative GDP gap from NRU and actual unemployment rate: Negative GDP Gap = %. Why? (show your work!) If normal GDP is $16,000 billion, then the forgone output in dollar term is $ billion.
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