According to following diagrams determine the sensitivity parameters of Okun's and Phillips equations and a, and long run equilibrium GDP growth rate gy and natural rate of unemployment un. Au, = 0(gr, -gy) An₁ = a(u, − u₂) Suppose that initial unemployment level of this country is 5%, and initial inflation rate is 1-1 is 4% and GDP grows gr, at 10% in a given year. What would be current unemployment u, and inflation , rates? Your answer: O U₁ = 4 Ou₁=6 Ou₁=5 O 4₁=3 Clear answer Next Growth Rate π₁ = 6,4 T₁=4,4 π₁ = 7,2 T₁ = 4,2 change in inflation rate 5 10 15 unemployment rate 20
According to following diagrams determine the sensitivity parameters of Okun's and Phillips equations and a, and long run equilibrium GDP growth rate gy and natural rate of unemployment un. Au, = 0(gr, -gy) An₁ = a(u, − u₂) Suppose that initial unemployment level of this country is 5%, and initial inflation rate is 1-1 is 4% and GDP grows gr, at 10% in a given year. What would be current unemployment u, and inflation , rates? Your answer: O U₁ = 4 Ou₁=6 Ou₁=5 O 4₁=3 Clear answer Next Growth Rate π₁ = 6,4 T₁=4,4 π₁ = 7,2 T₁ = 4,2 change in inflation rate 5 10 15 unemployment rate 20
Chapter9: Classical Macro Economics And The Self Regulating Economy
Section: Chapter Questions
Problem 2WNG
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