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Question: Okun's law: Suppose the economy has a natural rate of unemployment of 6%.
(a) Suppose short-run output over the next 4 years is +1%, 0%, -1%, and -2%. According to Okun's law, what unemployment rates would we expect to see in this economy?
(b) Consider another economy in which the unemployment rate over the next 3 years is 6%, 7%, and then 4%. According to Okun's law, what are the levels of short-run output Y in this economy?
Home Country: Given that the total market of the Home country is 900,000 units. Given the equations and parameter values above, solve for the equilibrium number of automobile companies, the number of cars each firm will produce, and the price of the ..
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Anna works on an assembly line where it takes her 20 minutes to produce 150 units of a product needed to fill a container.
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Home has 1,200 units of labour available. It can produce two goods, apples and bananas. The unit labour requirement in apple production is 3.
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