QUESTION 2Refer to the accompanying data, which is for a specific year in a hypothetical economy for which Okun's law is applicable Population figures are inmillionPotential Real GDP$200 billionNatural Rate of Unemployment6%88Unemployed964Total Population712Employed19Discouraged WorkersMembers of Underground EconomyA. 4%v The unemployment rate isB. 11%v The amount of output being forgone by the economy isC. $12 billionD. $20 billionE. 9%

Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…

QUESTION 2 Refer to the accompanying data, which is for a specific year in a hypothetical economy for which Okun's law is applicable Population figures are in million Potential Real GDP $200 billior Natural Rate of Unemployment 6% 88 Unemployed Total Population 964 Employed 712 Discouraged Workers 19 Members of Underground Economy v The unemployment rate is A. 4% v The amount of output being forgone by the economy is B. 11% C. $12 billion D. $20 billion E. 9%

QUESTION 2 Refer to the accompanying data, which is for a specific year in a hypothetical economy for which Okun's law is applicable Population figures are in million Potential Real GDP $200 billior Natural Rate of Unemployment 6% 88 Unemployed Total Population 964 Employed 712 Discouraged Workers 19 Members of Underground Economy v The unemployment rate is A. 4% v The amount of output being forgone by the economy is B. 11% C. $12 billion D. $20 billion E. 9%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

1. Plot graph 2. Identify the relationship between economic growth and unemployment if any (positive, negative, no relationship) Use the data to justify your choice) 3. Does the relationship observed in number 2 satisfy the economic view of relationship between economic growth and unemployment? Use references to support your answer.
1. The steady-state unemployment rate is defined on the separation rate, s, and the find rate, f. a. If s = 0.03 and f = 0.5, find the %3D steady-state unemployment rate.
1. To be considered unemployed, a person needs to meet 2 qualifications: a. b. 2. Historically, what are the highest and lowest unemployment rates in our history? 3. There are 5000 people of working age. 2500 people are working full time. 900 are working part time. 350 people are without jobs and looking for work. a. Calculate the unemployment rate. b. Calculate the labor force participation rate. #3 % & 3 4. 8 6. e y W f k a C V m alt alt
Total Population Civilian Population Employed Unemployed 300,000 250,000 127,500 22,500 The above table shows some labor market data for a country. Potential GDP in this country is Yp = 100,000, natural rate of unemployment is 5 percent. Okun's alpha has been estimated to be a = 2. What is the real GDP in this country? O 80000.00 O 85000.00 O 90000.00 110,000.00 O 120,000.00
Which of the following questions does the official unemployment rate, U3. answer? What percentage of the working age population is classified as unemployed? How many workers are discouraged? O What percentage of the labor force is classified as unemployed? How many people in the economy are underemployed?
4. In our country the participation rate is 60% and the unemployment rate is 10%. If the number of peopl able to work is 20 million then the number of unemployed will be: A. 12 million. C. 10.8 million E. 1.2 million B. 8 million D. 2 million
3 If in an economy there are 2.3 million unemployed and the labour force is 8 million Calculate the Unemployment rate (U-rate) Select one: a. 28.75 b. -797.70 c. NONE d. 802.30 e. 10.30
4. Which of the following characterises that Mr. Salim lost his job due to heavy monsoon rains in Oman? a.Seasonal unemployment b.Technological unemployment c.Frictional unemployment d.Structural unemployment
The following data is given in the table: GDP, billions of dollars Year Unemployment rate, % 4125 3712,5 2015 6 2016 In 2015 the unemployment rate was equal to the NAIRU. a. Calculate the GDP gap for 2016 (in absolute value and in percent). Determine whether it's a recessionary or inflationary gap. Explain why? b. What was the actual unemployment rate in 2016? Show computations. Okun's coefficient is 3.
Questions E,F,G
4
Who would be considered unemployed? O an 80-year old who quit working two decades ago a recent college graduate without a job who just had a job interview O an adult who stays home and takes care of an elderly relative O a college student who is not working and is not looking for a job Which of the following was used to drive growth in the former Soviet Union? O more capital more technology O more markets 7 Which group has the lowest unemployment rate? O those without a high school degree O those with a high school degree O those with a college degree