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Question: Toyota Plans to Build a Better Company Toyota will continue to produce 3 million cars per year and will use the balance of its resources to upgrade its workers' skills and create new technology. In three years' time, Toyota plans to produce better cars and be more productive. Source: Financial Post, April 7, 2014
a. What is the opportunuity cost of Toyoto upgrading its workers' skills and creating new technology?
b. Sketch Toyota's PPF and mark its production point in 2014. Now show on your graph Toyota's PPF in 2018.
Total unemployment is 5%. Frictional unemployment is 2.3% and the economy is at full employment. What is cyclical unemployment? Round to 1 decimal place and no percent sign needed.
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