Question
Suppose short-run output exceeds full potential output by 3 percent. a) [5 points] According to Okun's law, what is the effect on unemployment? b) [5
Suppose short-run output exceeds full potential output by 3 percent. a) [5 points] According to Okun's law, what is the effect on unemployment? b) [5 points] Assuming that inflationary expectations are constant, what is the effect on wages?
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Using Econometrics A Practical Guide
Authors: A. H. Studenmund
7th edition
013418274X, 978-0134182742
