On the second question, we use Okun's law U=-a(g-b)

Bb Capita Bb Discus Bb EC X C Imagil C Imagi: C In Clas Inbox Q Politic C My | | Ellucia View SSR_T|M Your Cours + V X C learn-us-east-1-prod-fleet02-xythos.content.blackboardcdn.com/61aab133e7df2/75583709?X-Blackboard-Expiration=1646632800000&X-Blackboar... Apps USCIS - Civics Pract... O library rh Robert hall job sear.. Chase job search U.S. Bureau of Labo... O Just Kids in | Linkedin Home | Salesforce > > Reading list E ECO 220 - Assignment 3 1 78% + For the first part of this assignment, please go to the FRED website at https://fred.stlouisfed.org/ and search for, in this order: a. UNRATE (official unemployment rate) b. GDPC1 (real GDP) Use data from 1990 - 2015. Go to "Edit Graph" and modify UNRATE to quarterly data and at the bottom using the drop down menu "Units" select change from a year ago Then, add the other plot, GDPC1. Make sure this series is also quarterly and change the "Units" to percent change from a year ago. You can take a screenshot directly from FRED or you can extract this data into Excel and produce a good-looking chart there. Make sure to label your axes. Present this graph at the beginning of your homework. Estimates for Okun's law in the US are often given as AU = -0.6(g - 2), where AU is the change in the unemployment rate and g is the growth rate of real GDP. 1. Theoretically, what rate of real GDP growth is required to obtain a 2% point change in the unemployment rate? 2. Imagine the first parameter (a) in our formula is -0.3. First, what growth rate of real GDP would be required now to obtain a 2% point change in the unemployment rate? What does this suggest which real world labor market processes does the first parameter attempt to capture? 3. Imagine the second parameter (b) in our formula is 4. What growth rate of real GDP would now be necessary to achieve a constant rate of unemployment? What does this suggest the second parameter in our equation is attempting to capture? O 9 EM 5:56 PM 6 3/8/2022Bb Capita Bb Discus Bb EC X C Imagil C Imagi: C In Clas Inbox Q Politic C My | | Ellucia View SSR_T|M Your Cours + V X C learn-us-east-1-prod-fleet02-xythos.content.blackboardcdn.com/61aab133e7df2/75583709?X-Blackboard-Expiration=1646632800000&X-Blackboar... Apps USCIS - Civics Pract... O library Th Robert hall job sear... Chase job search U.S. Bureau of Labo.. O Just Kids in | LinkedIn Home | Salesforce > > Reading list E ECO 220 - Assignment 3 2 /2 78% + In class, we derived an important accounting identity: percent change in the average nominal wage = percent change of productivity + percent change in labor share of income + inflation. 4. Let's imagine a business decided to raise wages. Using our accounting identity to guide our thinking, what are some possible outcomes from this action? 5. Again, using the above accounting identity, what could result from a rapid increase in labor productivity while the average nominal wage stays the same? 6. What does it mean to say that rapid productivity growth is deflationary? Over the last week and a half, we have been discussing different labor market outcomes and their causes. 7. Besides the official unemployment rate, we might look at a few different indicators to assess labor market slack. Choose two of the following below and discuss whether they suggest a stronger or weaker labor market. Write 1-2 sentences. a) Shorter average duration of unemployment b) Slower wage growth c) Lower quit rate d) Lower job vacancy rate e) Higher labor force participation rate LO L 9 w ] 5:56 PM 6 3/8/2022