How much output is being forgone because of cyclical

Assignment Help Macroeconomics
Reference no: EM132482815

Suppose that the natural rate of unemployment in a particular year is 5 percent and the actual rate of unemployment is 9 percent. Use Okun's law to determine the size of the GDP gap in percentage-point terms. If the potential GDP is $500 billion in that year, how much output is being forgone because of cyclical unemployment?

Reference no: EM132482815

Questions Cloud

Determining the price level and nominal gdp change : If real GDP grows by 10 percent this year, and if the money supply does not change this year, how does the price level and nominal GDP change?
How does the price level and nominal gdp change : Assuming that velocity is stable, if real GDP grows by 10 percent this year, and if the money supply does not change this year, how does the price level
Design a chart of accounts for SDC : Design a chart of accounts for SDC. Explain how you structured the chart of accounts to meet the company's needs and operating characteristics
Determine the amount of sunland company inventory : Determine the amount of Sunland Company inventory. Sunland Company follows the practice of pricing its inventory at the lower-of-cost-or-market
How much output is being forgone because of cyclical : If the potential GDP is $500 billion in that year, how much output is being forgone because of cyclical unemployment?
Summarize aim of the study and specific research objectives : summarize aim of the study and specific research objectives - assignment requires you to read and annotate ONE academic journal publicationsof quantitative
Calculate depreciation expense using straight line method : On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $48,000. Calculate depreciation expense for 2021 and 2022 using straight line method
Determine the proper unit value for balance sheet : Using the LCNRV rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2017, for each of the inventory
Determine how much would appear on Beals flexible budget : Beal Manufacturing Co.'s static budget at 12,000 units of production includes $72,000 for direct labor. Determine how much would appear on Beals flexible budget

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd