Suppose that the natural rate of unemployment in a particular year is 4 percent and the actual unemployment rate is 13 percent. Instructions: Enter your answers as a whole number. a. Use Okun's law to determine the size of the GDP gap in percentage-point terms. percent b. If potential GDP is $500 billion in that year, how much output is forgone because of cyclical unemployment? $ billion

a. 18 percent

b. $90 billion

Step-by-step explanation:

a. Calculation to use Okun's law to determine the size of the GDP gap in percentage-point terms.

First step is to find the difference between ACTUAL RATE of unemployment and NATURAL RATE of unemployment

Difference=13%-4%

Difference= 9%

Based on the information above calculation we can see that the ACTUAL RATE of unemployment EXCEEDS the NATURAL RATE of unemployment by 9%, which indicates a CYCLICAL UNEMPLOYMENT.

Thus, According to Okun's law, this translates into an 18 % GDP gap in percentage-point terms (= 2 × 9%).

Therefore the the size of the GDP gap in percentage-point terms is 18 percent

b. Calculation to determine how much output is forgone because of cyclical unemployment

Forgone Output :

By applying Okun’s law we known that the GDP gap is 18%, which means that we are 18% below the GDP amount which is given as $500 billion,

Hence,

Output forgone = (18/100) ×$500 billion

Output forgone=0.18×$500 billion

Output forgone=$90 billion

Therefore the Forgone Output is $90 billion

option a, c,d are correct.

step-by-step explanation:

from the given figure, it is given that z is equidistant from the sides of the triangle rst, then from triangle tzb and triangle szb, we have

tz=sz(given)

bz=zb(common)

therefore, by rhs rule,δtzb ≅δszb

by cpctc, sz≅tz

also, from δctz and δasz,

tz=sz(given)

∠tcz=∠saz(90°)

by rhs rule, δctz ≅ δasz, therefore by cpctc, ∠ctz≅∠asz

also,from δasz and δzsb,

zs=sz(common)

∠zbs=∠saz=90°

by rhs rule, δasz ≅δzsb, therefore, by cpctc, ∠asz≅∠zsb

hence, option a, c,d are correct.

29 mil

step-by-step explanation: