1. Suppose Country A’s potential (or natural) output level is $10B. In 2017, the expected price levelwas150, the actual price level was 140, and the actual output was $8B. Determine α.
2. In 2018, the expected price level was 140, and the actual output was $12B. Find the actual price level in 2018.
3. Suppose Country A’s natural rate of unemployment is 5%. In 2017, the actual unemployment rate was 7%, the actual inflation rate was 1%, and the expected inflation rate was 2%, and there was no shock. Find β.
Q.1.
Q.2.
Q.3.
Get Answers For Free
Most questions answered within 1 hours.