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Question 1: Suppose that 3% of employed workers lose their jobs each month (s=0.03) and 27% of unemployed workers find new jobs (f=0.27). Find the natural rate of unemployment from this information.
Consider an economy described by the following equations:
Y=C+I+G
Where, Y = 7,000, G = 1,000, T = 1,000
C = 250 + 0.75 (Y-T)
In this economy, compute public saving.