please solve this ...macro

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please solve this ...macro

SoniaKapoor



please solve a part....my answer is not matchingg
MA Economics
DSE
2014-16
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Re: please solve this ...macro

Arushi :))
W= A^e(1+y)(1-u)/A   ( let mu be represented by y)
1=A^e/A(1+y)(1-u)
A/A^e(1+y)=1-u
u= 1-A/A^e(1+y)
therefore u = [A^e(1+y)-A]/A^e(1+y)
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Re: please solve this ...macro

Arushi :))
when A^e/A increases the unemployment rate also increases
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Re: please solve this ...macro

Arushi :))
what are you getting soniaaaaaaa?
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Re: please solve this ...macro

SoniaKapoor
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Acha i got it...i made a very silly error...my bad
thanku arushi :-))
MA Economics
DSE
2014-16