Suppose the unemployment rate is 8 percent and the natural unemployment rate is 6 percent. If potential GDP is $8 trillion, using Okun's Law what does real GDP equal?

Make use of a T-account to show the effect of the Fed's sale of $500 million worth of government securities on the Fed's balance sheet. (assume the Fed receives a check from the sale of securities)

What will be an ideal response?

The rate of discount is best described as the rate of

A) return on physical capital after the cost of capital has been removed. B) return on financial assets after an inflation adjustment has been made. C) interest used to derive the present values of future sums. D) return on financial capital that has not been adjusted for inflation.