Question
Assume that at the end of 2015/2016 fiscal year economy of Malawi registered official unemployment rate of 27% while natural rate of unemployment 15%. If
Assume that at the end of 2015/2016 fiscal year economy of Malawi registered official unemployment rate of 27% while natural rate of unemployment 15%. If the economy’s full employment real GDP is K915 billion.
(a)What was the size of real GDP gap? (Correct to 2 decimal points). [5 marks]
(b) What was Malawi’s real GDP in the economy? (Correct to 2 decimal points). [5
marks]
(c)What economic and social costs would the Malawi economy incur due to high rates of unemployment as indicated above?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
