Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
expand_more
expand_more
format_list_bulleted
Question
Chapter 9, Problem 8E
a)
To determine
b)
To determine
The short-run level of output according to the Okun’s law.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals:
a)32%.
b)25%.
c)20%.
d)8%.
If the number of people classified as unemployed is 20,000 and the number of people classified as employed is 230,000, what is the unemployment rate?
a) 8.7%
b) 9.5%
c) 8%
d) 11.5%
12) In a small town of 125 people there are 25 people under 16. Out of the remaining persons, there are 10 retired people, 63 people
will full-time jobs, 5 people with part-time jobs, 2 full-time students, 4 full-time homemakers, and 16 people who do not have jobs, but
want them. Only 12 of these latter 16 people without jobs had actively looked for a job in the preceding four weeks. In this town, the
unemployment rate, (U3), is
A) 17.0
B) 25.0
C) 15.0
D) 16.0
E) 12.0
%.
Knowledge Booster
Similar questions
- In a town of 800 people there are 120 children under the age of 16, 76 retired people, 92 people with part -time jobs, 37 full-time students, and 21 people who watched their children fulltime. There were 154 people without work who gave up looking for a job. Everyone else either had a full-time job or was actively searching for one, and the labor force participation rate is 57.6 %. If fthe unemployment rate is 12.5%, what is the number of full-time employed people?arrow_forwardMinimum wage had been increased from $12.5 in 2013 to $15 in 2014. By examining these variables (unemployment rate, inflation rate and economic growth rate) across the three years, determine whether the increased minimum wage had the expected impact? Justify your response. Year 2013 2014 2015 Unemployment (%) 3.7 3.3 3.4 Inflation (%) 5.2 5.7 4.7 Economic Growth (%) 2.23 -0.91 1.82arrow_forwardMinimum wage had been increased from $12.5 in 2013 to $15 in 2014. By examining these variables (unemployment rate, inflation rate and economic growth rate) across the three years, determine whether the increased minimum wage had the expected impact? Justify your response. Year 2013 2014 2015 Unemployment (%) 3.7 3.3 3.4 Inflation (%) 5.2 5.7 4.7 Economic Growth (%) 2.23 -0.91 1.82 In responding start by explaining what you expect to happen to the three variables due to the increase in the minimum wage then discuss what you are seeing based on the data. Finally conclude by discussing if what you are seeing is in line with expectations. You can also provide a reason why it did or didn't match up with expectations.arrow_forward
- Suppose that the labor force in 2008 was 154.3 million and unemployment was 8.9 million. What was the unemployment rate in 2008?A 0.058%B 10.2%C 5.8%D 9.3%arrow_forward132.) You decide to lend your sister, who has never defaulted on a loan (ie. ρd =0), $1000 for one year. At the end of the year, she pays you $1050. Suppose you expected the inflation rate, πe, to be 3%. However, at the end of the year, you learn that the inflation rate was actually 6%. What was the realrate of interest that you expected to receive? Are you better or worse off than expected? 2%; worse 2%; better 1%; worse 1%; betterarrow_forwardAssume that the level of structural, frictional and seasonal unemployment in this simple economy is 4%. The cyclical unemployment rate is Total Population Working-Age Population Employed Unemployed Question 30 a Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. n 3.1% b 4.1% 5.1% 100,000 70,000 50,000 5,000 d 6.1% Karrow_forward
- Suppose Dalia is a sports fan and buys only football tickets. Dalia deposits $2,000 into a savings account that pays an annual nominal interest rate of 20%. Assume this interest rate is fixed, and so it will not change over time. On the day she makes her deposit, suppose that a football ticket has a price of $20.00. Initially, Dalia's $2,000 deposit has a purchasing power of football tickets. For each of the annual inflation rates given in the following table, first determine the new price of a football ticket, assuming it rises at the rate of inflation. Then enter the corresponding purchasing power of Dalia's deposit after one year in the first row of the table for each inflation rate. Finally, enter the value for the real interest rate at each of the given inflation rates. Hint: Round your answers in the first row down to the nearest football ticket. For example, if you find that the deposit will cover 20.7 football tickets, you would round the purchasing power down to 20 football…arrow_forwardA.) Okun's law is stated as... Change in the Unemployment Rate = -0.2*(Percent Change in Real GDP - 2.5) ... Then what is the expected annual growth rate of GDP? B.)Change in the Unemployment Rate = -0.2*(Percent Change in Real GDP - 2.5) ... If the percent change in GDP is 3%, and the unemployment rate starts at 5%, what is the change in the unemployment rate?arrow_forwardSuppose Dalia is a sports fan and buys only football tickets. Dalia deposits $3,000 into a savings account that pays an annual nominal interest rate of 5%. Assume this interest rate is fixed, and so it will not change over time. On the day she makes her deposit, suppose that a football ticket has a price of $15.00. Initially, Dalia's $3,000 deposit has a purchasing power of football tickets. For each of the annual inflation rates given in the following table, first determine the new price of a football ticket, assuming it rises at the rate of inflation. Then enter the corresponding purchasing power of Dalia's deposit after one year in the first row of the table for each inflation rate. Finally, enter the value for the real interest rate at each of the given inflation rates. Hint: Round your answers in the first row down to the nearest football ticket. For example, if you find that the deposit will cover 20.7 football tickets, you would round the purchasing power down to 20 football…arrow_forward
- 12 Suppose 20 million people are employed, and 5 million are unemployed. What is the unemployment rate? Does that number change if we also state that there are an additional 30 million people who are not in the civilian labor force?arrow_forwardSuppose Dalia is a sports fan and buys only football tickets. Dalia deposits $4,000 into a savings account that pays an annual nominal interest rate of 5%. Assume this interest rate is fixed, and so it will not change over time. On the day she makes her deposit, suppose that a football ticket has a price of $10.00. Initially, Dalia's $4,000 deposit has a purchasing power of football tickets. For each of the annual inflation rates given in the following table, first determine the new price of a football ticket, assuming it rises at the rate of inflation. Then enter the corresponding purchasing power of Dalla's deposit after one year in the first row of the table for each inflation rate. Finally, enter the value for the real interest rate at each of the given inflation rates. Hint: Round your answers in the first row down to the nearest football ticket. For example, if you find that the deposit will cover 20.7 football tickets, you would round the purchasing power down to 20 football…arrow_forwardQ3.The amount of sugar produced in a sugar factory decreases by eight percent annually during the years 1401 to 1405. As a result, the amount of water consumed each year is ninety-two percent of the previous year. Suppose the cost of factory water consumption in 1401 is $ 80,000. With the annual inflation rate of twelve percent, get the current value of the factory water consumption. Use a payment set with a geometric slope to calculate the current value.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education