You are given that the economy has a natural rate of unemployment of 3.3%. Let inflation...

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You are given that the economy has a natural rate of unemployment of 3.3%. Let inflation...

You are given that the economy has a natural rate of unemployment of 3.3%.

Let inflation change by -0.3 percentage points.

Assuming a slope of 1/3, use the Phillips Curve and Okun's Law to fine the corresponding unemployment rate.

Note: find short run output first, then the unemployment rate.

Do not type the "%" sign, and round to two decimal places.

Example: .0815 = 8.15% should be entered as 8.15

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Answer 1

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