1. F there is cycdical unemployment in the economy the government might: c. cut income tax d. reduce government spending a. increase interest rates b. encourage savings
Q: 25) The amount by which potential GDP (a atural rate of unemployment. (b) aggregate cost of…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: 5. Calculate the one-year real rate of interest faced by the U.S. government given that expected…
A: Nominal interest rate is the interest rate charges before calculating the inflation rate into…
Q: 2. What is Classical Dichotomy? Write a detailed note on the effeteness of policy in short-run and…
A: The classical dichotomy refers to the idea that real variables, like employment and output, are…
Q: FRED - Unemployment Rate 10 6. 3. 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 Shaded…
A: In any economy, real GDP provide information about the actual growth in the production of output…
Q: 1)Plot the following markets on a graph: Labor market: using 5 laborers and $5.00 for wage as point…
A: a) To plot the labor market using 5 laborers & $5.00 for wages at point A which is the point of…
Q: 1. Give an example to illustrate how the economy can operate below the natural unemployment rate.
A: Natural Rate of Unemployment is the lowest level of unemployment rate that a growing and healthy…
Q: a) How do you think output and unemployment is related? Explain and provide a global or domestic…
A: A). The relationship between output and unemployment because output is when an organization or firm…
Q: Fiscal Policy - Ask FRED The accompanying graph depicts the unemployment insurance benefits paid by…
A: The graph reveals that the spending of average unemployment insurance in 2007 is nearly $30 billion.
Q: (a) Calculate the labour force participation rate in New Rugbyland. (b) How many people are employed…
A: Hi! thanks for the question but as per the guidelines, we can answer up to three subparts at one…
Q: 7. Look at the following data: The frictional unemployment rate is 1.5 percent, the natural…
A: The frictional unemployment rate is defining as the rate of unemployment generated by job search or…
Q: 2. In 2016, there were approximately 159.2 million people in the labor force and the unemployment…
A: here we calculate the number of unemployed by using the given data which are as follow -
Q: the government wants to reduce unemployment, government spending should be--- and/or taxes…
A: *Answer: increased; decreased The increase government spending increases jobs and decreases in…
Q: 2. During recessions, output a and unemployment both fall b. and unemployment both rise c. rises,…
A: 2) Recession refers to a massive decrease in economic activities, which is usually caused by…
Q: 2) a) The official, measured rate of unemployment fluctuates around the economy’s natural rate of…
A: Unemployment rate: It is the percentage of the labour force that is unemployed. Natural…
Q: _1, the unemployment rate was 9 percent, 5 percent above the yment threshold of 4 percent. v many…
A: In 2011, Unemployment rate = 9% Full employment threshold = 4%
Q: (c) Suppose that 20,000 of the employed switches to jobs in the underground economy. When…
A: please find the answers below.
Q: The table below represents the goods that are produced by Siri bread and water are used by the…
A: We need to calculate the real value of water each year to determine in which year it is most…
Q: In April approx. 22 million people filed for unemployment ins. In March, the labor force was…
A: Given: MPC = 0.5 GDP fall= $1,537,677,600,000 (This is the amount that needs to be increased in…
Q: Briefly explain the four different types of unemployment
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Fiscal Policy- Ask FRED The accompanying graph depicts the unemployment insurance benefits paid by…
A: Fiscal policy:From the given graph, the year spend more GDP on unemployment insurance is
Q: c the impact of a war in the Middle East on the rate of inflation in the United States
A: Microeconomics is that part of economics that studies various agents individually, such as an…
Q: Nation's Economic Pain Deepens The unemployment rate jumped to 5.5% in May 2008 from 5% in April…
A: The unemployment rate is the percent of the labor force that is jobless.
Q: a. What does the term inflation mean? If meat prices go up, does this automatically mean that there…
A: Answer: Inflation: Inflation refers to the rate of increase in the price of a basket of goods and…
Q: Suppose the trend growth is 3 percent and the economy is producing output at an annual rate of $5…
A: In financial matters, Okun's regulation is an experimentally noticed connection among joblessness…
Q: Explain the difference between the U-3 measure of unemployment and the U-6 measure of unemployment.…
A: U-3 and U-6 both are measures of unemployment where the former represents the number of persons who…
Q: 14) When the government prints money and gives it to the old as a subsidy-gift then, A) The gift has…
A: The total amount of money being circulated in an economy is referred to as money supply. It includes…
Q: 3. Mark decided to quit his job in a bank and started to continue his education in a full-time…
A: Formula used- unemployment rate= unemployed people divided by labour force ×100 Simple multiplier =…
Q: (a) Identify two macro-economic aims of the government. (b) Explain two reasons why someone may be…
A: Two macroeconomic aims of government are: (1) To adopt and implement policies that encourage and…
Q: Whether you gain or lose during a period of inflation depends on: a) how the price increases affect…
A: During the period of inflation, the general price level will continuosly rising.
Q: 1. In an economy, 2 percent of the employed lose their job every month (s = 0.02) and 10 percent of…
A: The steady state rate of unemployment, also called the natural rate of unemployment, is the average…
Q: 1.Suppose that 20,000 of the unemployed switches to jobs in the underground economy. when…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: a. Suppose that American households become more worried about the future, and they begin to save…
A: In an economy, if people become less confident about future, they tries to save some money that can…
Q: Economics 4. Suppose that Okun's law can be described by the following equation: Y-Y* = -3(u – u')…
A:
Q: 14) The A) increase; rigid C) decline; flexible in employment during a recession is smaller if wages…
A: Recession refers to the period of economic downfall.
Q: When the economy hit the bottom in 1933: O the national output was one third lower than it had been…
A: The great depression started from 1929 and showed its effects till some years. It was caused mainly…
Q: A businessman has no fear of signing a long time contract to purchase during – Select one: a. Low…
A: Inflation refers to an increase in the general price levels in an economy over a given period of…
Q: QUESTION 1 When an economy is in a recession, and increase. a. employment; prices O b. employment;…
A: Gross Domestic Product is the value of all the domestically produced goods and services. It…
Q: (c) Why is the unemployment "inflation-stabilizing rate of rate in labour market equilibrium also…
A: Labor market equilibrium occurs at the point where the labor demand is equal to the labor supply for…
Q: The following data is given in the table: GDP, billions of Year Unemployment dollars rate, % 2015…
A: In 2015 GDP = $4125 billions In 2016 GDP = $3712.5 billions In 2015, the Natural rate of…
Q: c) Suppose that 20,000 of the employed switches to jobs in the underground economy. When interviewed…
A: The true unemployment rate is the rate of unemployment for those people who are not working and are…
Step by step
Solved in 2 steps
- Think about the business cycle: during a recession, unemployment increases; it decreases in an expansionary phase. Explain what happens to TANF, SNAP, and Medicaid programs at each phase of the business cycle (recession, trough, expansion, and peak).Given the federal budget deficit in recent years, some economists have argued mat by adjusting Social Security payments for inflation using me CPI, Social Security is warming recipients. What is their argument, and do you agree or disagree with it?3. . If the government wants to reduce unemployment, government spending should be--- and/or taxes should be-------. increased; increased decreased; decreased decreased; increased increased; decreased
- A.) Okun's law is stated as... Change in the Unemployment Rate = -0.2*(Percent Change in Real GDP - 2.5) ... Then what is the expected annual growth rate of GDP? B.)Change in the Unemployment Rate = -0.2*(Percent Change in Real GDP - 2.5) ... If the percent change in GDP is 3%, and the unemployment rate starts at 5%, what is the change in the unemployment rate?Question 8 (a) Identify two macro-economic aims of the government. (b) Explain two reasons why someone may be of working age but not in the labor force? (c) What can cause an increase in a country’s labor force? (d) Explain how different types of unemployment may be caused and consider which might be the most serious. (e) Can a rise in unemployment cause a fall in inflation? (f) What are some policies government may take to reduce unemploymenta. If the economy is currently at full employment, at what level should the central bank set the nominal interest rate? b. At what level should the central bank set the nominal interest rate if the economy is 20% below potential GDP? c. Explain the difference between the nominal interest rate and the real interest rate. Using these concepts of the nominal interest rate and the real interest rate explain how lenders can protect themselves from any negative effects of inflation if the inflation is fully anticipated.
- Assume that a 1% change in the inflation rate causes a 1% increase in nominal interest rates, which in turn causes a 1% drop in real growth the following year. During the latter half of the 1990s, real growth averaged about 4%. Calculate how much inflation would have to increase for the following to happen, using Okun’s Law. (A) A 1% increase in the unemployment rate. (B) A big enough change to cause a ‘‘typical’’ recession, where real GDP declines 2%. (C) Suppose real growth slows down to 2½% because of a change in consumer and business sentiment. How much would the unemployment rate change each year?i ned this inword not handwritten Q6. Suppose the number of employed people in an economy is 312,545,372. The unemployment rate in this economy is 7.4 percent, or .074, and the labor force participation rate is 80 percent, or .80. a. What is the size of the labor force? b. How many people are unemployed? c. What is the size of the working-age population?Question # 2 a) Suppose the number of employed people in Pakistan is 20.5 million. The unemployment rate in this economy is 8.8 percent, and the labor force participation rate is 65 percent. i) What is the size of the labor force and working-age population? ii) How many people are unemployed? b: Explain and analyze different government policies which affect the unemployment rate in Pakistan? ( Maximum 200 words). c: Before June 2020, the labor market in Pakistan was at equilibrium with an equilibrium wage (WE) of Rs. 15,000 and equilibrium quantity of labor (LE) 10 million. In the last week of June, 2020, government of Pakistan imposed a minimum wage Act raising the minimum wage to Rs. 20,000. Using a graph, explain the effect of imposition of minimum wage on unemployment in labor market of Pakistan.
- I just need assitance and a better understanding of 3 and mostly 4 1. Another economy has the production Y = A * K^0.5 * L^0.5, the marginal product MPL = 0.5 * A * K^0.5 / L^0.5, in which K = 144 and the supply of labor w = 5 * EP/P *L^0.5 Productivity is A=50. In absence of shocks and policies, EP/P=1, the number of jobs is L = 60, and wage is w = 38.73. But now inflation is slower than expected, with EP/P=1.2. Find the new equilibrium number of workers. 2. Find the new equilibrium wage at EP/P=1.2 3. Graph the change in the labor market equilibrium. Mark the before and after equilibria with E0 and E1. Label axes and curves, map relevant values onto axes. 4. Now let's consider this same scenario in terms of the accelerationist Phillips curve. The labor force is N=64. Find the rates of unemployment before and after as (N-L)/N and map them into our surprise inflation indexes, EP/P. Label the natural rate of unemployment, show the cyclical rate of unemployment. Step 1:…_______________________ happens when the economy is producing at its potential and unemployment is at the natural rate of unemployment. a) Stagflation b) The interest rate effect c) The foreign price effect d) Full employment GDP Question 2 1 / 1 point Melanie decided to save 20% of her annual earnings for 10 years so she would have a down payment for a house. After 5 years, what change in the economy would cause an increase in the purchasing power of the funds she has managed to save? a) stagflation b) depression c) deflation d) recession Question 3 1 / 1 point If the price level of what firms produce is rising across an economy, but the costs of production are constant, then: a) higher profits will induce expanded production. b) a majority of industries will start running into limits. c) increase in quantity produced won't be large. d) the maximum potential GDP will be exceeded. Question 4 1 / 1 point What term is used to describe the maximum quantity that…Suppose that people expect inflation to equal 3 percent, but in fact, prices rise by5 percent. Describe how this unexpectedly high inflation rate would help or hurtthe following: (4)1.the government2. a homeowner with a fixed-rate mortgage3.a union worker in the second year of a labor contract4. a college that has invested some of its endowment in government bonds