Okun's law gives the (empirically observed) correspondence betvieen a change in the unemployment rate and a change in the gross domestic product. Let g be the percentage change in the gross domestic product over a year, and let u be the change, in percentage points, of the unemployment rate over that year. One form of Okun's law states that 9- 3 - 2u. For example, if the unemployment rate is unchanged over a year, then u = 0 and g = 3- 2 x o= 3, so the gross domestic product changes by 3%. (a) Suppose that in a year, the unemployment rate rises from 4% to 7% (s0 u = 3 percentage points). According to Okun's lavw, vwhat is the percentage change in the gross domestic product? % (b) From 2013 to 2014, the unemployment rate fell from 7.4% to 6.2%. What does Okun's law give for the percentage change in the gross domestic product? (Note: In this case, u is a negative number.) (c) According to Okun's law, what change in the unemployment rate vould correspond to having no change in the gross domestic product?
Okun's law gives the (empirically observed) correspondence betvieen a change in the unemployment rate and a change in the gross domestic product. Let g be the percentage change in the gross domestic product over a year, and let u be the change, in percentage points, of the unemployment rate over that year. One form of Okun's law states that 9- 3 - 2u. For example, if the unemployment rate is unchanged over a year, then u = 0 and g = 3- 2 x o= 3, so the gross domestic product changes by 3%. (a) Suppose that in a year, the unemployment rate rises from 4% to 7% (s0 u = 3 percentage points). According to Okun's lavw, vwhat is the percentage change in the gross domestic product? % (b) From 2013 to 2014, the unemployment rate fell from 7.4% to 6.2%. What does Okun's law give for the percentage change in the gross domestic product? (Note: In this case, u is a negative number.) (c) According to Okun's law, what change in the unemployment rate vould correspond to having no change in the gross domestic product?
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
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