Determine the change in unemployment - okun''s law, Microeconomics

1. 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: 3/19/2013 3:54:13 AM | Location : United States







Related Discussions:- Determine the change in unemployment - okun''s law, Assignment Help, Ask Question on Determine the change in unemployment - okun''s law, Get Answer, Expert's Help, Determine the change in unemployment - okun''s law Discussions

Write discussion on Determine the change in unemployment - okun''s law
Your posts are moderated
Related Questions


Neoliberalism So much thinking about the proper role of government in economic growth over the past 2 decades has tends to conclusions which are today known as neo-liberal. The

reason for kinked demand curve

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

What is the Molarity and Normality of the ferrous ammonium salt ? For exam....196 gm (initial)

what is histogram?

characteristics of microeconomics

boumal''s single product modelwith out advertisment

Consider the following linear program in primal form and develop the dual formulation in a detailed manner. Use matrix notation in developing the dual. Clearly express all the dual