Question

The figure on the right plots the change in the unemployment rate on the vertical axis against the output growth rate on the horizontal axis for a hypothetical economy. The line drawn in the graph gives the best fit to the scatterplot. According to this figure, higher output growth leads to an increasein the unemployment rate 7 If the slope of the line in the graph is -0.4, we can say that, on average, an increase in the growth rate of 1% decreases the unemploym ent rate by roughly 04%. (Enter your response as a positive real number.) 0 According to the figure, the unemployment rate will remain constant if the output growth rate is about 101%. (Round your response to one decimal place.) 0 -2 0 Output growth (percent) 3 6 10

0 0
Add a comment Improve this question Transcribed image text
Answer #1

(a) Higher output growth leads to a decrease in unemployment rate (since the line is downward sloping, output growth and unemployment rate are inversely related).

(b) Increase in growth rate of 1% decreases unemployment rate by 0.4% (= 1% x 0.4).

(c) Unemployment rate will be constant if growth rate is 0.0%.

Add a comment
Know the answer?
Add Answer to:
The figure on the right plots the change in the unemployment rate on the vertical axis...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Okun's Law for Brazil between the years 1990 and 2013: the vertical axis gives the change...

    Okun's Law for Brazil between the years 1990 and 2013: the vertical axis gives the change in unemployment rate and the horizontal axis gives the real GDP growth rate: we can state the equation of the line of best fit as An= -0.1183(growthrate) +0.4161 Brazil (1990-2013) Change in unemployment rate (%) y=-0.1183x + 0.4161 R? = 0.2247 No Na 2009 -10 Real Growth rate (%) Reference O n Law for Bran If Brazil's economy is not growing at all, according...

  • The above graph plots final velocity on the vertical axis and \frac{1}{elapsed\:time}1 e l a p...

    The above graph plots final velocity on the vertical axis and \frac{1}{elapsed\:time}1 e l a p s e d t i m e on the horizontal axis. It is easier to draw a Constant Acceleration Line (e.g., the two upwardly sloping lines) on this graph than it would be to draw a Constant Acceleration Line on a graph that used identical data, but had "elapsed time" on the horizontal axis, because: A. Using 1elapsedtime  gives you a straight Constant Acceleration Line....

  • (21) The lowest rate of unemployment that does not create inflationary pressure is called the NERU:...

    (21) The lowest rate of unemployment that does not create inflationary pressure is called the NERU: Non-Expansionary Rate of Unemployment MUR: Minimal Unemployment Rate NAIRU: Non-Accelerating Inflation Rate of Unemployment NRU: Natural Rate of Unemployment          (22) The Marxian view of the business cycle is that economic fluctuations occur because capitalism must increase the rate of exploitation of workers in order to increase profits. consumers are not spending enough to stimulate growth in the economy. the government does...

  • REQUIRED RATE OF RETURN (Percent) <Back to Assignment Attempts: Keep the Highest: /5 8. Changes to...

    REQUIRED RATE OF RETURN (Percent) <Back to Assignment Attempts: Keep the Highest: /5 8. Changes to the security market line The following graph plots the current security market line (SML) and indicates the return that investors require from holding stock from Happy Corp. (HC). Based on the graph, complete the table that follows. 20.0 18.0 12.0 Return on HC's Sfock 8.0 4.0 0.5 1.0 1.5 2.0 0 RISK (Beta) 11/ REQUIRED RATE OF RETURN (Percent) mcntKISR and Rates of Return...

  • According to the Fisher equation, the real interest rate is given by a zero. b. the...

    According to the Fisher equation, the real interest rate is given by a zero. b. the nominal interest rate plus the rate of inflation c. the nominal interest rate minus the rate of unemployment. d. the rate of economic growth. e. the nominal interest rate minus the rate of inflation An implication of sticky inflation is that, through monetary policy changes, the Federal Reserve a. has no impact on inflation b. can alter the real interest rate in the long...

  • Please I need help with question #7 C. 5. 9. 10. 11 Given the rate of...

    Please I need help with question #7 C. 5. 9. 10. 11 Given the rate of change of a quantity and its initial value explain how to find the value of at a future time 1 2 0. 6. What is the result of integrating a population growth rate between times I = a and 1 = b. where b > a? Basic Skills 7. Displacement and distance from velocity Consider the graph shown in the figure, which gives the...

  • How do the national income accounts change if social security payments increase? A) Consumption falls. B)...

    How do the national income accounts change if social security payments increase? A) Consumption falls. B) Consumption rises. C) Savings rise. D) This change is not captured in the national income accounts. How do the national income accounts change if unemployment benefits paid to people increase? A) Consumption falls. B) Consumption rises. C) Savings rise. D) This change is not captured in the national income accounts. How do the national income accounts change if national defense spending increases? A) Government...

  • To study he cnergy savings due o adding slar heating pane s o house es archers measured the natur...

    To study he cnergy savings due o adding slar heating pane s o house es archers measured the natural gas consumption afthe house ror more han year, then i stall solar panels and observed the natura gฮs consum ption or almost two years. The explanatory varlable x is degree-days per day during the several weeks covered by each observation, and the response variable y is gas consumption (in hundreds of cubic feet) per day during the same period. The figure...

  • I am currently trying to figure out the experiment below. Please complete Table 1 with an...

    I am currently trying to figure out the experiment below. Please complete Table 1 with an explanation, I appreciate it thank you!  Promise to give thumbs up! Introduction The phase differences between the output voltage, the voltage across the inductor, the voltage across the capacitor, and the voltage across the resistor will be examined at resonant frequency. The voltage and phase relationship will also be examined for frequencies above and below resonance. Theory An inductor, a capacitor, and a resistor are...

  • 1. For each of the following regression models, write down the X matrix and 3 vector....

    1. For each of the following regression models, write down the X matrix and 3 vector. Assume in both cases that there are four observations (a) Y BoB1X1 + B2X1X2 (b) log Y Bo B1XiB2X2+ 2. For each of the following regression models, write down the X matrix and vector. Assume in both cases that there are five observations. (a) YB1XB2X2+BXE (b) VYBoB, X,a +2 log10 X2+E regression model never reduces R2, why 3. If adding predictor variables to a...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT