Economics 4. Suppose that Okun's law can be described by the following equation: Y-Y* = -3(u – u') %3D Y* Where u is the unemployment rate, u' is the natural rate of unemployment, Y is the GDP, and Y* is the potential GDP. Suppose that u* =5%. Calculate the GDP gap if u =5.4%. Calculate the potential GDP if Y = 12,000 • The job losing rate is 2.0%, and the job-finding rate is 45%. Find the unemployment rate in the next month, knowing that the labour force (LF) totals 1,000? Calculate the employment rate (e) and the total working-age population (15-64 Years), if the labour force participation rate (If) is equal to 76%.

Economics 4. Suppose that Okun's law can be described by the following equation: Y-Y* = -3(u – u') %3D Y* Where u is the unemployment rate, u' is the natural rate of unemployment, Y is the GDP, and Y* is the potential GDP. Suppose that u* =5%. Calculate the GDP gap if u =5.4%. Calculate the potential GDP if Y = 12,000 • The job losing rate is 2.0%, and the job-finding rate is 45%. Find the unemployment rate in the next month, knowing that the labour force (LF) totals 1,000? Calculate the employment rate (e) and the total working-age population (15-64 Years), if the labour force participation rate (If) is equal to 76%.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter6: How Statisticians Measure Inflation

Section: Chapter Questions

Problem 3TY

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