Using Okun's Law, calculate the gap between potential output and actual output in a hypothetical economy in 2019 and 202

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Using Okun S Law Calculate The Gap Between Potential Output And Actual Output In A Hypothetical Economy In 2019 And 202 1 (16.23 KiB) Viewed 16 times

Using Okun's Law, calculate the gap between potential output and actual output in a hypothetical economy in 2019 and 2020, writing billions of dollars to one decimal place e.g. $1.0 billion. In your answers, assume a natural unemployment rate of 5.5%. Enter the answer after rounding off to 1 decimal place a. In 2019, the unemployment rate was 6.3% and real GDP in 2017 dollars was $1,556.2 billion. Therefore GDP in 2017 dollars could have been $ billion higher. b. In 2020, the unemployment rate was 7.4% and real GDP in 2017 dollars was $1,625.8 billion. Therefore GDP in 2017 dollars could have been $ billion higher.