A) A country's natural unemployment rate is 4 percent and its actual unemployment rate is 7 percent, what is its cyclical unemployment rate? Instructions: Enter the value for the output gap as an absolute number B) According to Okun's law, this country would have a recessionary output gap of percent percent.

a. Cyclical unemployment rate = 3%

b. According to Okun's law, this country would have recessionary output gap of 6%

Explanation:

Note: The full and organized question is attached as picture below

a. A country's natural unemployment rate = 4% & its actual unemployment rate = 7%

Cyclical unemployment rate = Actual unemployment rate - Natural unemployment rate

Cyclical unemployment rate = 7 - 4

Cyclical unemployment rate = 3%

Cyclical unemployment is known to happen when the overall demand for goods and services in an economy cannot reach the level of full employment

b. Okun's law is known as the relationship between the economy unemployment rate and its Gross National Product

According to Okun's law, this country would have recessionary output gap of 6%. This comes from if a country's recessionary output gap grows by 4%, then its cyclical unemployment rate will increase by 2%

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total