Whats u/e right now? (1 Viewer)

[Lord Ac]

Ive been pretty out of it. My teacher told me 5.6% on friday. that seems pretty damn low from what i know of eco in australia.

Is it true?

Ac

 

[dirty dave]

yep, its the lowest its ever being in ( i think) 22 yrs

 

[Minai]

I dont think its sustainable though, since the natural rate is around the 6% level...generally in the long run, it will gravitate back to the natural rate

 

[Newbie]

perhaps structural reform has lowered the nairu........according to bulmer anyway

 

[Lord Ac]

isnt it around 5.3% from the NAIRU formula?

Ac

 

[Newbie]

that assuming the formula is still right
some dudes dispute that

 

[kt san]

yea...text book state 5%-7%
so 5.6% is well within the range
esp since of micro reform

 

[Left-ism]

consider the following

 

[TastesGoodBut]

the thing u have to consider is that the govt will want it to drop a little anyway, because it means that there is less room for growth.. its always good to have some unemployment

 

[spadey]

hay whats the formula for the nairu is
our teacher told us it is 5 + 0.(current rate) has any one else seen this ?

 

[Pudgedog]

what does u/e mean lol

 

[monkey187]

does anyone know the natural rate of unemployment

 

[jumentous]

u/e would be unemployment

the Nairu is based on so many factors that it is only done at a very high level of economics, also the formulas/predictions are partially subjective so there is no precise NAIRU at any time

 

[TastesGoodBut]

nairu is calculated as follows

Nairu = 5% + (current unemp rate - 5%)/2


therefore atthe moment the Nairu is
5% + (5.6-5%)/2 = 5% + 0.3% = 5.3%

 

[jumentous]

...
never seen that, and doubt it.
Doesn't matter though they will never ask for it

 

[TastesGoodBut]

its in Rileys book i think

they wont ask, but its good to mention what it is in essays etc... they might ask "what is the NAIRU" but not get u to work it out idontt think

 

[2003HSC]

Originally posted by TastesGoodBut
nairu is calculated as follows

Nairu = 5% + (current unemp rate - 5%)/2


therefore atthe moment the Nairu is
5% + (5.6-5%)/2 = 5% + 0.3% = 5.3%

where did you find that?

 

[truly-in-bliss]

yeah cuz its not in my riley's book... if its in bulmer i doubt we need to know it..