User Account

All Pages

Natural rate of unemployment

Assignment Help Business Management
Reference no: EM131556701

Suppose that the economy responds to the real interest rate according to the following equation:

Yt = Y* - Y* (1.5) (i(t-1) - 0.025)

Potential GDP is $25 trillion; expectations are adaptive; the natural rate of unemployment is 5.5%; the 2010 inflation rate was 3.5%. The phillips curve is:

πt = πte  + 0.75 (Y(t-1) - Y*)/Y*

Suppose the unemployment rate in 2011 was 7.1%. What is GDP in 2011 (show your answer in trillions to two decimal places. i.e. if your answer is one trillion five hundred fifty million, then you enter "1.55")?

Suppose output in 2010 is 27.4. Calculate the inflation rate in 2011?

Suppose that the policy interest rate is 1.2. What will the 2012 Output be?

What will the 2012 and 2013 inflation rates be?

If the federal reserve wants to bring inflation to 2% in 2014 what will output need to be in 2013?

The fed wants inflation to be 2% in 2013. In question 45 you calculated the 2013 output level to get there. Now calculate the 2012 interest rate necessary to achieve that? 

Reference no: EM131556701

Questions Cloud

Creating a training and development program : Imagine that you have been tasked with creating a training and development program for midlevel business managers in an organization.
How much less can they expect to pay over the life of loan : FINANCING A HOME The Sandersons are planning to refinance their home. The outstanding principal on their original loan is $100,000 and was to be amortized.
Create a simple java program that connects to database : create a simple Java program that connects to this database using JDBC. Your program should then query this database's "student" table.
How much larry should deposit each month : INVESTMENT ANALYSIS Since he was 22 years old, Ben has been depositing $200 at the end of each month into a taxfree retirement account earning interest.
Natural rate of unemployment : Potential GDP is $25 trillion; expectations are adaptive; the natural rate of unemployment is 5.5%; the 2010 inflation rate was 3.5%. The phillips curve is:
Warehouse management processes : Research at least 2 companies, and familiarize yourself with their warehouse management processes, and then discuss the following:
Which will provide the program user some basic information : DisplayApplicationInformation, which will provide the program user some basic information about the program.
Find size of monthly payments paul will be required to make : PERSONAL LOANS Two years ago, Paul borrowed $10,000 from his sister Gerri to start a business. Paul agreed to pay Gerri interest for the loan at the rate.
Discuss the technological changes : Using a Microsoft Word document, please assume you are a reporter writing ten years hence. Please discuss the technological changes.

Reviews

Write a Review

Business Management Questions & Answers

  The tech stadium at home football games

John Bradley is a senior at Tech, and he's investigating different ways to finance his final year at school. He is considering leasing a temporary food facility outside the Tech stadium at home football games. Tech sells out every home game, and he k..

  Who are your greatest competitors in the market

Who are your greatest competitors in the market? Which is the most important strategy for ensuring competitive advantage over competitors in the market?

  Describe relationship between annual objectives and policies

Describe the relationship between annual objectives and policies. Briefly explain seven of the guidelines to follow in developing an organizational chart.

  Print the number of processes

1. Write a UNIX command line that will print the number of processes that root has running on this machine. This uses pipes and is tricky. Test your answer!

  Individual assignment score

The participation grade can be no more than 15% of the total. The midterm grade must count at least twice as much as the individual assignment score. The final exam grade must count at least three times as much as the individual assignment score.

  Growth in global business activity

Growth in global business activity affects how employees and associates from different organizations and within the same organization network with each other.

  Describe the core leadership concepts of confucianism

a) Describe the core leadership concepts of Confucianism and Daoism/Taoismb) Do you agree with the proposition that the hallmark thoughts of Confucianism and Daoism/Taoism about leadership can be useful in the Western world? Why or why not? How so?

  Discuss the consumer decision making process

Discuss the consumer decision making process. Provide a chart or diagram to support your discussion. Analyse how your consumers go through the process of decision making

  What is the hedged dollar value of given note at maturity

What is the hedged dollar value of this note at maturity?-  What is the annualized dollar yield on the hedged note?

  Explain the inventory level will be affected

Robert produces 300 units of a product per hour as well as 30 units are needed to fill a container. It takes fifteen minutes to obtain the materials needed from the previous workstation

  Faculties merge-communicating change

Critical Review: When Faculties Merge-Communicating Change

  Retain management''s support of a compliance program

How can compliance programs be beneficial to a company when management feels there is no risk for the business operation? How would you retain management's support of a compliance program for a firm based in the US but operating in multiple countr..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd