1.2 Which of the following conditions would not be studied by the macroeconomist? a) The level of national unemployment during 1988. b) The effect of government economic policy on the inflation rate during 1987. c) The effect of changing petroleum prices on the demand for coal. d) The effect of lower income taxes on the rate of economic growth. 1.3 Read the following extract and answer questions 1.3 - 1.5. "Illegal car imports cost the taxman as much as R8bn Kia MD Gary Scott says about 55,000 of the illegal imports slip into SA every year, more than the number of new vehicles sold every month An estimated 440,000 illegally imported, used cars are travelling regularly on SA roads, costing the exchequer up to R8bn in lost taxes and posing a major risk to road safety, Kia SA MD Gary Scott said on Tuesday. He blamed slack regulations for the fact that about 55,000 "grey" imports, as they are known, slip into SA each year. That's more than the number of new vehicles sold every month..." The problem being illustrated in the above extract regarding the use of gross domestic product as a measure of economic performance is... a) Data revision b) Economic welfare c) Unrecorded activity d) Non-market production

1.2 Which of the following conditions would not be studied by the macroeconomist? a) The level of national unemployment during 1988. b) The effect of government economic policy on the inflation rate during 1987. c) The effect of changing petroleum prices on the demand for coal. d) The effect of lower income taxes on the rate of economic growth. 1.3 Read the following extract and answer questions 1.3 - 1.5. "Illegal car imports cost the taxman as much as R8bn Kia MD Gary Scott says about 55,000 of the illegal imports slip into SA every year, more than the number of new vehicles sold every month An estimated 440,000 illegally imported, used cars are travelling regularly on SA roads, costing the exchequer up to R8bn in lost taxes and posing a major risk to road safety, Kia SA MD Gary Scott said on Tuesday. He blamed slack regulations for the fact that about 55,000 "grey" imports, as they are known, slip into SA each year. That's more than the number of new vehicles sold every month..." The problem being illustrated in the above extract regarding the use of gross domestic product as a measure of economic performance is... a) Data revision b) Economic welfare c) Unrecorded activity d) Non-market production

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter6: Business Cycles And Unemployment

Section: Chapter Questions

Problem 19SQ

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1.2 Which of the following conditions would not be studied by the macroeconomist?a) The level of national unemployment during 1988.b) The effect of government economic policy on the inflation rate during 1987.c) The effect of changing petroleum prices on the demand for coal.d) The effect of lower income taxes on the rate of economic growth.
Which of the following conditions would not be studied by the macroeconomist? A) the level of national unemployment during 1988. B) the effect of government economic policy on the inflation rate during 1987 C) the effect of changing petroleum prices on the demand for coal D) the effect of lower income taxes on the rate of economic growth
Suppose a small island nation, called Econland, has a population of 100,000 people. The labor force consists of 60,000 people, out of which 55,000 are employed and 5,000 are unemployed. Calculate the following economic indicators for Econland: Unemployment Rate Labor Force Participation RateEmployment Rate Population Growth Rate (Assuming the previous year's population was 95,000): Round your answers to the nearest two decimal places.
Using the information below, answer questions 1 & 2 Okun’s Law, which describes the relationship between Real GDP growth and the change in the unemployment rate and may be approximated as follows: Real GDP Growth = 3 – 2*Change in unemployment rate This relationship applies to changes from year to year. The average unemployment rate in the 12 months of 2019 was 3.7%. The average unemployment rate during the 12 months of 2020 was 5.9%. 1. What does Okun’s Law imply will be the rate of Real GDP growth between 2019 and 2020? Explain your answer. 2. How does this prediction compare to the actual rate of Real GDP growth between 2019 and 2020?
What type of unemployment (cyclical,frictional,or structural) applies to each of the following: a. landscapers laid off in response to drop in new housing construction during a recession. b. coal miners laid off due to EPA regulations that shut down coal fired power c. a financial analyst who quits his/her job in Chicago and is pursing similar work in Arizona d. printers laid off due to drop in demand for printed catalogues and flyers as firms go the internet to promote an advertise their products. e. factory workers in the U.S. laid off as the plants shut down and move to Mexico and Ireland.
Macroeconomists differ from microeconomists because macroeconomists focus on the study of _______.inflation, unemployment, and GDP than in individual markets.market prices than the cost of living.inflation in the United States rather than inflation in Puerto Rico.tariffs than global trade.
The table below shows unemployment and labor force statistics for an economy. Actual rate of unemployment 3% Natural rate of unemployment 4% Population of the country 125 million Number of people employed 97 million Number of people unemployed 3 million Number of people employed part time 5 million Number of people discouraged workers 2 million Would the number of people employed part-time be included in labour force or not? Given the state of the economy described in the table, is actual real output less than, greater than, or equal to potential real output? Explain. Calculate what the cyclical unemployment rate would be if the actual rate of unemployment increased to 5 percent. Suppose discouraged workers reenter the labor force and find employment. Will the actual rate of unemployment increase, decrease, or stay the same?
The following are examples of macroeconomic questions that remain debated among economists and policy-makers: 1. Does economic growth create inequality in income and wealth? 2. Do lower wages reduce unemployment? 3. Is there a trade-off between unemployment and inflation? 4. Is a large government debt a problem? 5. Should central banks target inflation in asset prices or only in consumer prices? Choose any two of the above questions and in each case briefly outline the economic reasoning behind different viewpoints.
What are the two biggest recessions in terms of length and magnitude from the graph, the shaded areas show recession and 2020 is not included? How does the unemployment rate react during the two main recessions you have identified? What was the level of the unemployment rate during the first and the last quarter of negative growth for those two recessions? why data for France for 1980s is not avaliable What do you conclude about the link between recession and the variation in unemployment?
Using data from the bank of Ghana website from 1970 -2018,show the relationship between inflation, GDP and unemployment graphically with explanation .
Which of the following groups is most harmed by unanticipated inflation? Select one: a.Those whose incomes are only reset at long time intervals such as annually. b.Those who are able to raise their prices easily. c.The government. d.Those who hold property as their main form of saving. If your bank account balance is $100 at the start of the year and it is $110 at the end then you Select one: a.have the same wealth at the end of the year as you did at the start. b.are definitely wealthier because you have more money. c.are poorer at the end of the year as the real value of your savings has fallen. d.are wealthier if inflation is 5 percent. Around the world, the institution generally responsible for inflation control where control of inflation is the policy target is the Select one: a.Central Bank. b.Treasury. c.Department of Labour. d.Office of the Minister of Finance.
For the next set of questions determine if they are a. real or b. nominal 1.Real GDP is considered a ____ variable. a. real b. nominal 2.Employment is considered a ____ variable. a. real b. nominal 3.Unemployment rate is considered a ____ variable. a. real b. nominal 4.Consumption is considered a ____ variable. a. real b. nominal 5.Price level is considered a ____ variable. a. real b. nominal