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Use the information from the previous question: C=1,800+0.6Y Ip=900 X=100 M=0.3...
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Use the information from the previous question:
C=1,800+0.6Y
Ip=900
X=100
M=0.3Y,
and assume that the economy is at its short-run equilibrium. You are also told that the actual rate of unemployment in the economy is 18%, the frictional rate of unemployment is 2%, the structural rate of unemployment is 6% and the cyclical rate of unemployment is 10%. Participation rate is 70%. The size of the population is 13,500,000. Using Okun’s Law with "beta" equal to 2 what is the level of potential output in the economy to the nearest whole number?0%
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100%
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