Suppose a country surveys households and finds that 135 million people can be classified as being employed and 7 million people can be classified as being unemployed. The unemployed are people who do not have jobs but are actively looking for work. Given this information, what do we know about the unemployment rate for this country? The unemployment rate for this country is %. (Round your response to two decimal places.) Suppose this country has a natural rate of unemployment equal to 4.43%. What do we know about the size of the output gap, Y - Yp, in this country? The output gap in this country is million units. (Round your response to two decimal places and use a negative sign if necessary.) Now suppose this country has an a = 0.75 (). What do we know about the change in inflation, x - n(- 1), in this country between the previous year and this year?
Suppose a country surveys households and finds that 135 million people can be classified as being employed and 7 million people can be classified as being unemployed. The unemployed are people who do not have jobs but are actively looking for work. Given this information, what do we know about the unemployment rate for this country? The unemployment rate for this country is %. (Round your response to two decimal places.) Suppose this country has a natural rate of unemployment equal to 4.43%. What do we know about the size of the output gap, Y - Yp, in this country? The output gap in this country is million units. (Round your response to two decimal places and use a negative sign if necessary.) Now suppose this country has an a = 0.75 (). What do we know about the change in inflation, x - n(- 1), in this country between the previous year and this year?
Chapter27: The Philips Curve And Expetactions Theory
Section: Chapter Questions
Problem 8SQP
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Transcribed Image Text:Suppose a country surveys households and finds that 135 million people can be classified as being employed and 7
million people can be classified as being unemployed. The unemployed are people who do not have jobs but are actively
looking for work.
Given this information, what do we know about the unemployment rate for this country?
The unemployment rate for this country is %. (Round your response to two decimal places.)
Suppose this country has a natural rate of unemployment equal to 4.43%.
What do we know about the size of the output gap, Y - Yn, in this country?
The output gap in this country is million units. (Round your response to two decimal places and use a negative sign if
necessary.)
Now suppose this country has an a = 0.75 ().
What do we know about the change in iflation, a -
T( – 1), In this country between the previous year and this year?
The change in inflation is percent. (Round your response to two decimal places and use a negative sign if necessary.)
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