4. Suppose that Okun's law can be described by the follOwIng ey Y-Y* — -3(и — и") Y* %3D 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 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%. = 12,000

4. Suppose that Okun's law can be described by the follOwIng ey Y-Y* — -3(и — и") Y* %3D 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 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%. = 12,000

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations

Section: Chapter Questions

Problem 2P

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