Economy and Economy have constant rates of unemployment over time, these being 5% and 10% respectively. The exponential rate of growth of aggregate output in is a constant 4% and that in is a constant 8%. The exponential rate of growth of labour productivity in is 2% and that in is 4%. Which economy must be having the higher rate of growth of labour force over time?
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Economy A and Economy B have constant rates of unemployment over time, these being 5% and 10% respectively. The exponential rate of growth of aggregate output in A is a constant 4% and that in B is a constant 8%. The exponential rate of growth of labour productivity in A is 2% and that in B is 4%. Which economy must be having the higher rate of growth of labour force over time? (A) A (B) B (C) Both A and B have the same rate (D) Information provided is insufficient to answer the question
Inflation, unemployment and the Phillips curve has come up 106 times in 7 exams since 2006.
This question is on Measuring unemployment, part of Inflation, unemployment and the Phillips curve in Macroeconomics.
How the unemployment rate is defined and computed, and the types of unemployment.
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Question from the JNU SSS 2017 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.