Congratulations yet again. You've just been appointed chairman to the Council of Economic Advisers in Textland. You must rely on your research assistant for the specific numbers. He says income is $50,000, mpe is .75, and the president wants to lower unemployment from 8 to 6 percent. (Remember Okun's rule of thumb.) a. Advise him.
b. Your research assistant comes in and says "Sorry, I meant that the mpe is .67." You redo your calculations.
c. You're just about to see the president when your research assistant comes running, saying, "Sorry, sorry, I meant that the mpe is .5." Redo your calculations