In Macroland a country that operates according to Okuns law potential GDP

# In macroland a country that operates according to

• 248

This preview shows page 98 - 108 out of 248 pages.

98.In Macroland, a country that operates according to Okun's law, potential GDP equals \$10 trillion, the actual rate of unemployment is 8 percent, and the natural unemployment rate is 4 percent. What is the real GDP in Macroland? A. \$9.2 trillionB. \$9.8 trillionC. \$10 trillionD. \$10.8 trillion

Subscribe to view the full document.

99.In Macroland, a country that operates according to Okun's law, real GDP is \$9.6 trillion, the actual rate of unemployment is 8 percent, and the natural unemployment rate is 6 percent. What is potential GDP in Macroland?
100.In Macroland, a country that operates according to Okun's law, potential GDP equals \$10 trillion, actual GDP is \$9.6 trillion, and the actual rate of unemployment is 8 percent. What is the natural rate of unemployment in Macroland?

Subscribe to view the full document.

101.The economy of Alpha operates according to Okun's law. In Alpha potential GDP equals \$500 billion, actual GDP equals \$520 billion, and the natural rate of unemployment is 5%. What is the actual rate of unemployment in Alpha?
102.If actual GDP equals potential GDP, then: A. the actual unemployment rate is greater than the natural rate of unemployment.B. the actual unemployment rate equals the natural rate of unemployment.C. the actual unemployment rate is less than the natural rate of unemployment.D. there is a recessionary gap.

Subscribe to view the full document.

103.If the actual rate of unemployment equals the natural rate of unemployment, then:
104.If real GDP is greater than potential GDP, then:

Subscribe to view the full document.

105.If real GDP is less than potential GDP, then:
106.The economy of Omega operates according to Okun's law. In Omega potential GDP and real GDP equal \$7 trillion, and the natural rate of unemployment equals 6%. What is the actual rate of unemployment in Omega? A. 4% B. 5% C. 6% D. 7%

Subscribe to view the full document.

• Fall '14
• none

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern