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Thursday, June 17, 2010

What is the natural rate of unemployment to the Philips curve problem of 袩 = 袩-1-0.5(u - 0.06)?

Also needs a graph of the solution, how much cyclical unemplyment to reduce inflation to 5%, Also, what is the sacrifice ratio? Also, if inflation is running at 10% and the FEd wants to reduce it to 5%, give two scenarios that will achieve that goal.



What is the natural rate of unemployment to the Philips curve problem of 袩 = 袩-1-0.5(u - 0.06)?exchange rate





I%26#039;m guessing that the equation is not correct. (Pi - 1) is likely supposed to be inflation in the previous period, so the (-1) is a subscript. In this case, the natural rate of unemployment is 6%. If the inflation rate is running at 10% the Fed must increase the interest rate, or decrease the money supply. This can be accomplished by increasing the discount rate or increasing the reserve requirement.



What is the natural rate of unemployment to the Philips curve problem of 袩 = 袩-1-0.5(u - 0.06)? loan



I don%26#039;t suppose you are referring to the secum curve, and it%26#039;s relation to Phillips Milk of Magnesium. LOL

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