Calculate the change output growth , Taxation

Utilize Okun's law to answer the questions below;

 ut - ut-1 = -0.4(gyt - 3%) Assuming ut-1 = 7%

a. Calculate the change in u (ut - ut-1) for each of the following values of gyt: 5%, 7%, 9%. How much has output growth increased? What happens to the change in unemployment due to this increase?

b. Calculate the change in u (ut - ut-1) for each of the following values of gyt: 2.5%, 1.5% and 0. How much has output growth decreased? What happens to the change in unemployment due to this increase?

c.  Calculate the change in u (ut - ut-1) when gyt is 3%. What must the growth rate of output be to keep ut from changing?

 

Posted Date: 3/5/2013 6:06:25 AM | Location : United States







Related Discussions:- Calculate the change output growth , Assignment Help, Ask Question on Calculate the change output growth , Get Answer, Expert's Help, Calculate the change output growth Discussions

Write discussion on Calculate the change output growth
Your posts are moderated
Related Questions
Tax Credit for the Elderly and Disabled - Taxpayers age 65 or older or those under 65 who are retired with permanent and total disability are entitled to claim a credit to decrease

Consider a multinational listed company that has recently carried out an acquisition. You may also select a company that carried out an acquisition long ago as long as there is inf

You have been offered a unique investment opportunity today; you will receive $500 one year from now. If you invest $10,000 today, you will receive $500 one year from now, $1500 tw

tds late filing fee code & late filing interest code

Miguel receives tangible personal property as an inheritance in 2011. The property was depreciated by the deceased (Miguel's father), and Miguel will also depreciate it. At the dat

Caroline is a 55-year-old Australian resident. She  is the chief marketing officer based in Sydney for XYZ Limited (XYZ), a public company listed on the Australian Securities Excha

Arnold and Beth file a joint return. Use the following data to calculate their deduction for AGI. Mortgage interest on personal residence $ 4,000 Property taxes on personal resi

Lehman Corporation purchased a machine on January 2, 2011, for $2,000,000. The machine has an estimated 5-year life with no salvage value. The straight-line method of depreciation

Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL 60781. Her Social Security number is 123-45-6789. Roberta has been divorced from her former husb

C corporation versus S corporation