Changes on output-consumption-interest rate and investment

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Reference no: EM131043046

1. If the economy were at a steady-state unemployment rate with a separation rate of 0.02 per month and a job-finding rate of 0.10 per month, and the labor force was 100 million, how many individuals would lose their jobs each month?

2. In a closed classical economy explain the effect of the following changes on Output, Consumption, the Interest rate and Investment.

1) Labor increases

2) Government expenditure increases.

3) Taxes increase.

4) Marginal Propensity to Consume decreases

Reference no: EM131043046

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