Suppose that the natural rate of unemployment in a particular year is 4 percent and the actual unemployment rate is 11 percent. a. Use Okun's law to determine the size of the GDP gap percentage-point terms b. If potential GDP is $500 billion in that year, how much output is forgone because of cyclical unemployment?

What could cause a production possibilities curve to move down and to the left? a.) a nation loses land after being defeated in a war. b.) an increase in the use of computer technology speeds up production c.) a baby boom 20 years ago results in a large number of young adults in the population today. d.) thousands of investors from overseas invest money in a nations economy.