Okun’s Law Assume the United States has the following employment information: Pe

ID: 1218695 • Letter: O

Question

Okun’s Law

Assume the United States has the following employment information:

People Working One Full Time Job: 110,000,000

People Working One Part Time Job: 24,000,000

People Working Two Jobs: 5,000,000

Discouraged Workers: 460,000

Labor Force: 148,000,000

Natural Rate of Unemployment 5%

What is the unemployment rate in this economy?

How many of these people are either frictionally or structurally unemployed?

Is the economy at full employment?

Is this economy in a recession?

If the actual (current) GDP is $12,364 billion, what is the GDP Gap?

The total population of united states is 318.9 million

Here 110 million are in full time job

24 million are in partime job

5 million work 2 jobs

0.46 milion are discouraged workers

total labor force uis 148 million.

People working in 2 jobs or 3 jobs it doesnt matter we can count them as employed

We calculate then we get 139 million people working

And discouraged workers are 0.46 million

(Number of people working + Discouraged workers) = 139.46 million

148-139.46/148 = 5.77%

is the unemployment rate

There is no data that suggest the number of frictionally and structurally unemployed people here. Partimers cannot be considered as unemployed.

The economy is just short of full employment by .7% It can still be considered as full employed

No there is no sign of recession looking at the data

the current GDP gap is 1.067

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