Suppose that the natural rate of unemployment in a particular year is 4 percent and the actual rate of unemployment is 7 percent. instructions: enter your answers as whole numbers.
a. use okun's law to determine the size of the gdp gap in percentage-point terms.
b. if the potential gdp is $500 billion in that year, how much output is being forgone because of cyclical unemployment?
Answers: 3
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