The IMF is forecasting that the US economy will grow by 2.7 per cent in real terms in 2010 and moderate to 2.4 per cent in 2011. At the end of 2009, the official unemployment rate in the US was 10 per cent. If real output per person employed grows constantly by 1.5 per cent in each of these years; the labour force grows by 1.2 per cent in 2010 and 1.3 per cent in 2011; and firms make no changes to average weekly hours overall, then you would expect the unemployment rate at the end of 2011 to be
Answer: 10.4 per cent
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