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

waht are the characteristics of perfect competetion market

what is the theory of second best?prove the theorm with the help of diagram?

Is economics an art or a science

TYPES OF POLLUTANTS In general the air pollutants can be sub divided into 2 catexampleories: Primary pollutants and Secondary pollutants Primary pollutants These are the poll

Indirect Utility Functions: Let qi denotes commodity i and pi is the price of that commodity. Let y denotes money income of the consumer. Suppose vi = pi/y. The budget constra

explain normal profits

1. Explain how absolute advantage and comparative advantage differ? 2. Give an example in which a person has an absolute advantage in doing some thing but another pers

Determinants of Short Run Cost - The relationship among the production function and cost can be exemplified by either increasing returns and cost or decreasing returns and cost

different types of production funtion and curve given by different economist