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Practice Exam Exercises for Section 9_1 and 14_1 key

Practice Exam Exercises for Section 9_1 and 14_1 key - Each...

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BEcon 301 Practice EXAM Exercises for Section 9.1 and 14.1 Section 9.1 1. a) 2%, 3%, 4%, and 5%. The normal growth rate must increase. As the labor force grows more quickly, employment will rise at a faster rate. b) 1%, 2%, 3%, and 4%. If the labor force is more productive, output growth will have to increase. 2. a. (all in %): -.4, -.8, -1.2. Each 1% increase in output growth causes u to fall by .4 percentage points. b. (all in %): +.4, +.8, +1.2.
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Unformatted text preview: Each 1% decrease in output growth causes u to increase by .4 percentage points. c. Unemployment does not change. Output growth must be 3% to keep u constant. 3. See textbook page 185: labor hoarding and exits from/entries to the labor force. 4. See textbook/class notes and the Focus box on page 187 (Okun’s Law across countries). 5. Section 14.1 1. See textbook/class notes. 2. See textbook/class notes. 1...
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