eco202 homework assignment- According to Okun’s Law, if the normal rate of growth of GDP is 3%

Submit a 4- to 5-page paper that addresses the following
questions. Be sure to use references within the paper to support your answers.
Show work for all calculations.
1.
According to Okun’s Law, if the normal rate of growth of GDP is
3% and the current unemployment rate is 6%, an increase in GDP growth to 4%
would cause unemployment to change by what percentage?
2.
When total output, income, employment, and trade decline for 6
to 12 months, the economy is in what part of the business cycle?
3.
Which has a larger effect on aggregate demand: an increase in
government expenditure or an equal sized decrease in taxes? Explain your
answer.
4.
To eliminate a recessionary gap, what fiscal policy should the
government pursue? Be specific.
5.
Indicate which of the following is expansionary OR
contractionary fiscal policy:
•
Increasing income tax
•
Bailing out the auto industry
•
The purchase of military helicopters
Assignment Expectations
Use concepts from good-quality resources you can find. Be sure
to cite all sources within the text and provide a reference list at the end of
the paper.
Length: 4–5 pages double-spaced and typed.
The following items will be assessed in particular:
•
Some in-text references to the modular background material (APA
formatting recommended).