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?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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