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nemployment rate

nemployment rate

Economics: Private and Public Choice (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter10: Dynamic Change, Economic Fluctuations, And The Ad-as Model
Section: Chapter Questions
Problem 2CQ
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The table describes four possible outcomes for 2017, depending on the level of aggregate demand in that year. Potential GDP is $12 trillion and the natural unemployment rate is 4 percent. A B C D Price level (2016 = 100) 102.5 105.0 107.5 110.0 Unemployment rate (percent of labor force) 9 6 4 3 Draw the four points A,B,C, and D on the aggregate supply curve using the data in the table. Label the points. Draw the short-run aggregate supply curve. Label it AS. >>> Calculate values of real GDP to 1 decimal place. C 112- 111- 110- 109- 108- Price level (GDP price index 2016 = 100) 107- 106- 105- 104- 103- 102- 101- 100+ 10.6 10.8 11.0 11.2 11.4 11.6 11.8 12.0 12.2 12.4 Real GDP (trillions of 2016 dollars) >>> Draw only the objects specified in the question
Transcribed Image Text:The table describes four possible outcomes for 2017, depending on the level of aggregate demand in that year. Potential GDP is $12 trillion and the natural unemployment rate is 4 percent. A B C D Price level (2016 = 100) 102.5 105.0 107.5 110.0 Unemployment rate (percent of labor force) 9 6 4 3 Draw the four points A,B,C, and D on the aggregate supply curve using the data in the table. Label the points. Draw the short-run aggregate supply curve. Label it AS. >>> Calculate values of real GDP to 1 decimal place. C 112- 111- 110- 109- 108- Price level (GDP price index 2016 = 100) 107- 106- 105- 104- 103- 102- 101- 100+ 10.6 10.8 11.0 11.2 11.4 11.6 11.8 12.0 12.2 12.4 Real GDP (trillions of 2016 dollars) >>> Draw only the objects specified in the question
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This is not correct! The natural unemployment rate is 4%! I don't know where the 6% came from?!

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