I guess I have to come out to reply to those who concern with the nature rate of unemployment First, What is the natural rate of unemployment? It is assumed to be the unemployment rate at the steady state or equilibrium. Note that equilibrium here is not referred to the common
(Continued with question 1 in exercise for chapter 3). Suppose instead of given 2000 there is an investment function which takes the form Above, i is the interest rate. Meanwhile there is a demand function for money Md=1.2Y-20000i Assume that the monetary base is equal to 2000 while the required reserve ratio is 1 ). What is the equilibrium level of output Y and interest rate?
When in 1920 I resumed my studies of theoretical physics which had long been interrupted by circumstances beyond my control, I was far from the idea that my studies would bring me several years later to receive such a higl and envied prize as that awarded by the Swedish Academy of Sciences each year to a scientist: the Nobel Prize for Physics. What at that time drew me towards theoretical physics was not the hope that such a high distinction