Assume that at the end of 2015/2016 fiscal year economy of Malawi registered official unemployment rate of
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Question:
Assume that at the end of 2015/2016 fiscal year economy of Malawi registered official unemployment rate of 27% while natural rate of unemployment 15%. If the economy’s full employment real GDP is K915 billion.
(a)What was the size of real GDP gap? (Correct to 2 decimal points). [5 marks]
(b) What was Malawi’s real GDP in the economy? (Correct to 2 decimal points). [5
marks]
(c)What economic and social costs would the Malawi economy incur due to high rates of unemployment as indicated above?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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