Suppose the real GDP of an economy is $520 billion dollars and its unemployment rate is 8%. If the natural rate of unemployment is estimated at 5%, what is the value of the country's potential GDP (LAS) in billions of dollars? Value of the country's potential GDP (LAS) is $ billion.
Suppose the real GDP of an economy is $520 billion dollars and its unemployment rate is 8%. If the natural rate of unemployment is estimated at 5%, what is the value of the country's potential GDP (LAS) in billions of dollars? Value of the country's potential GDP (LAS) is $ billion.
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Taking The Nation's Economic Pulse
Section: Chapter Questions
Problem 2CQ
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![Suppose the real GDP of an economy is $520 billion dollars and its unemployment rate is 8%.
If the natural rate of unemployment is estimated at 5%, what is the value of the country's potential GDP (LAS) in billions of dollars?
Value of the country's potential GDP (LAS) is $
billion.
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Transcribed Image Text:Suppose the real GDP of an economy is $520 billion dollars and its unemployment rate is 8%.
If the natural rate of unemployment is estimated at 5%, what is the value of the country's potential GDP (LAS) in billions of dollars?
Value of the country's potential GDP (LAS) is $
billion.
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O Search
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