The graph above shows the AD/LRAS/SRAS functions for a country.

In the short run wages and prices are sticky due to contracts, but they fully adjust to market conditions in the long run.

Marginal propensity to consume is MPC = 0.75.

Okun’s coefficient equals α = 2.

Currently all the markets are in equilibrium.

There is no foreign trade and so net exports equal zero.

Currently the government purchases equal G = 1,000 units.

All the questions refer independently to this baseline scenario.

The short-run effects of a policy or an event on P and Y are defined as the values of these variables after the AD function shifts but before the SRAS function begins shifting.

The government conducts a balanced-budget increase in its purchase of goods and services equal to 300 units.

As the result of this policy the cyclical unemployment in the short run will equal __________percent. (Short run meaning after the AD shifts but before the SRAS starts shifting)