Question: Please answer the following numerical problem. Please provide formulas and explanations. 9. You are given the following data on the unemployment rate and output. Year

Please answer the following numerical problem. Please provide formulas and explanations.

Please answer the following numerical problem. Please provide formulas and explanations. 9.

9. You are given the following data on the unemployment rate and output. Year 1 2 3 4 Unemployment rate 7%% 5% Output 950 1030 1033.5 1127.5 4. Assume that the natural rate of unemployment is 6% and that (Y - Y)/Y = 2(u - u). Find the full- employment level of output in each year. b. Calculate the growth rate of full-employment output in years 2, 3, and 4 two different ways. First, calcu- late the growth rates by using the values for full- employment output that you found in part (a). Then calculate the growth rate of full-employment output by using only the change in the unemployment rate, the growth rate of output, and the growth rate ver- sion of Okun's law, AY/Y = AY/Y - 2Au, which is similar to Eq. (3.6), except that in Eq. (3.6), AY/Y = 3 for the United States, where for this economy, AY/Y could differ from 3. Compare your answers from the two sets of calculations

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