Question
Suppose that a country produces oranges and the aggregate production function of the country is =20*(^0.2)*(^0.8) where Y is the quantity of oranges produced, K
Suppose that a country produces oranges and the aggregate production function of the country is =20*(^0.2)*(^0.8) where Y is the quantity of oranges produced, K is the amount of capital goods used, and N is the number of persons employed.
In a given period of time,
the amount of capital goods used in the country is 15,
the working age population is 100 and the Labor Force Participation Rate is 60%.
Based on the information above, the government of the country estimates that the full-employment output of the country is 786 oranges.
Compute the Natural Rate of Unemployment of the country based on the information above. Please show some steps.
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