User Account

All Pages

Suppose the number of immigrants per year allowed

Assignment Help Macroeconomics
Reference no: EM132476849

Okun's Law is written as u - u(-1) = -0.4(gY - 3%) 

a. What is the sign of u - u(-1) in a recession? What is the sign of u - u(-1) in a recovery? 

b. Explain where the 3% number comes from? 

c. Explain why the coefficient on the term (gY - 3%) is -0.4 and not -1. 

d. Suppose the number of immigrants per year allowed to enter the United States is sharply increased. How would Okun's law change?

Reference no: EM132476849

Questions Cloud

Examine should the city buy the trucks : Please respond to the following: In a heavily debated City Council meeting, one year ago, Cobb County learned that by buying larger garbage trucks it could.
Define the components of the gross domestic product : Define the components of the gross domestic product. What role does the marginal propensity to consume and the multiplier play in the economy.
How represents the expanded basic accounting equation : How represents the expanded basic accounting equation? Assets = Liabilities + Contributed Capital + Retained Earnings + Revenues - Expenses -Dividends
Fiscal consolidation at the zero lower bound : How does the zero lower bound on nominal interest rates make a fiscal consolidation more difficult?
Suppose the number of immigrants per year allowed : Suppose the number of immigrants per year allowed to enter the United States is sharply increased. How would Okun's law change?
Discussion about the life cycle costing : From the video below, discuss at what point an administrator should decide when the product should be terminated during the life cycle analysis.
Determine and add all overhead amounts to obtain the total : Add all overhead amounts to obtain the total. Divide individual overhead amounts by budgeted production volume for each product to obtain overhead per unit
Characterize behavior of inflation in medium-run : If the level of expected inflation is formed so pe equals ?p?(-1), characterize the behavior of inflation in a medium-run equilibrium.
Growth of a nations standard of living : Property rights, how important is this for the growth of a nations standard of living?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd