Business, 06.05.2020 04:46 harodkdc8463

Explain how the recognition that macroeconomic policymaking is an inexact science affects your recommended policy response to the following situations: a. Your estimate of the natural rate of unemployment is 5 percent, and the actual unemployment rate is 5.5 percent. If you recognize macroeconomic policymaking as an inexact science, you would interpret that the difference is: serious enough to require a policy change. not a measurement error, but not serious enough to warrant a policy change. due to a difference in unemployment expectations. due to a measurement error. b. Your estimate of the natural rate of unemployment is 5 percent, and the actual unemployment rate is 8 percent. Your understanding will be that: it is a measurement error. unemployment has risen above the natural rate. macroeconomics is an inexact science. people's expectations are unemployment are very high.

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Explain how the recognition that macroeconomic policymaking is an inexact science affects your recom...

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