Macroeconomics 12th Edition by Rudiger Dornbusch ,Stanley Fischer,Richard Startz

النسخة 12الرقم المعياري الدولي: 978-1259070969

Macroeconomics 12th Edition by Rudiger Dornbusch ,Stanley Fischer,Richard Startz

النسخة 12الرقم المعياري الدولي: 978-1259070969

تمرين 2

Suppose that actual output is $120 billion and potential (full-employment) output is $156 billion. What is an output gap in this hypothetical economy Based on your estimate of the output gap, would you expect the unemployment level to be higher or lower than usual

التوضيح

موثّق

Potential output is the maximum level of output that can be produced in a nation efficiently. Actual output is the actual production in the nation. The unemployment level is equal to the natural rate of unemployment at the potential output level.
The given information is as follows:
The potential output is $156 billion.
The actual output is $120 billion.
Calculate the output gap as shown below:

At this stage, the output gap is negative. The actual output is less than the potential output. So, the workers employed will also be less than normal.
Therefore, the unemployment rate will be higher than usual.