Using Okun’s law, fill in the four pieces of missing data in the table below. All of the following data are hypothetical.
Year Real GDP Potential GDP Natural Unemployment Rate (%) Actual Unemployment Rate (%)
2012 13,824 14,400 6 (a)
2013 14,500 (b) 5.5 5.5
2014 (c) 14,800 5.5 6
2015 15,296 14,850 (d) 5
Instruction: Enter your responses as whole numbers.
a. Actual unemployment rate in 2012: %
b. Potential GDP in 2013: $
c. Real GDP in 2014: $
Instructions: Enter your response rounded to one decimal place.
d. Natural unemployment rate in 2015: %