Suppose that in 2013,potential GDP in the nation of Octavia is $85 000,real GDP is $75 000,and potential GDP grows at a rate of 2% per year.
a. If real GDP is $78 000 in 2014,using Okun's law,calculate the cyclical rate of unemployment.
b. If real GDP is $83 000 in 2015,using Okun's law,calculate the cyclical rate of unemployment.
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