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 u Au, = 0(gr, - gr) An, = a(u, -u₂) Change in unemployment rate Suppose that initial unemployment level u-1 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? 2.7 05 O 4 05 1 Growth Rate Unemployment rate is 6%, inflation rate is 6,4% Unemployment rate is 4%, inflation rate is 6,4% Unemployment rate is 6%, inflation rate is 4% Unemployment rate is 4%, inflation rate is 4% Unemployment rate is 8%, inflation rate is 4% change in inflation rate 9 4 2 ONT s 10 15 unemployment rate 20

If the negative GDP gap were equal to 7% of the potential GDP and actual unemployment rate 7%. Compute the natural rate of unemployment (NRU) using Okun's law.

Assume that expected inflation is based on the following: n = 0+1. An increase in 8 will cause a. a reduction in the natural rate of unemployment. b. an increase in the natural rate of unemployment. c. inflation in period t to be more responsive to changes in unemployment in period t. d. None of the other answers is correct. e. no change in the natural rate of unemployment.

Consider the model of unemployment with job separation rate s = 0.05 and job finding rate f = 0.20. If the unemployment rate U = 10,000, L = 200,000, and E = 190,000 then what will the natural rate of unemployment be? Please show your calculation. If U were to fall to 5,000 because of an exogenous shock, how would the unemployment rate change in the short run? In the long run? If s were to fall to 0.03 because of an exogenous shock, how would the unemployment rate change in the short run? In the long run?

The following graph depicts the short-run and long-run Phillips curves (SRPC and LRPC) for a hypothetical economy in long-run macroeconomic equilibrium at point A, where the natural unemployment rate is 6% and the current inflation rate is 8% per year.

Answer it with step by step full explanation

op Government statisticians have estimated that: . frictional unemployment is 3.5%; and structural unemployment is 3.0%. If they have estimated that cyclical unemployment is currently -1.9%, what is their estimate for the natural rate of unemployment? Round to one decimal place and do not enter the % sign. If your answer is 6.14%, enter 6.1. If your answer is 6.15%, enter 6.2. If appropriate, remember to enter the sign 6.5

Which of the items below would likely contribute significantly to cyclical unemployment? Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. O Changes in technology that make workers' skills obsolete 2 "Sticky" wages ? An increase in public sector union membership DA sudden decrease in capital investment by businesses ? An increase in the minimum wage ? A decline in real GDP

Answer the given question with a proper explanation and step-by-step solution.    What is the expected evolution of unemployment for 2024? And the expected evolution of wages? And will the Labor Force Participation Rate (LFPR) converge to its pre-covid level by the end of 2023?

Why does this mean? "the natural rate of unemployment" and also can elaborate more on why the longrun philips curve is vertical at the rate? why inflation is also constant in longrun equillibrium?