The level of natural unemployment is 5%, the actual one is 10%. The Okun’s coefficient is 2%; MPC-0,75; potential GDP is 3000. Determine which policy the government should implement to achieve the full employment GDP, and what tools should be used and what changes are necessary?

The level of natural unemployment is 5%, the actual one is 10%. The Okun’s coefficient is 2%; MPC-0,75; potential GDP is 3000. Determine which policy the government should implement to achieve the full employment GDP, and what tools should be used and what changes are necessary?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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