2.1. Explain the changes in the following economic variables with proper justification during Peaks of Business cycle in the diagram. A) Inflation B) Unemployment rate C) Employment level in the country D) Aggregate demand of the country E) Aggregate supply in the country

2.1. Explain the changes in the following economic variables with proper justification during Peaks of Business cycle in the diagram. A) Inflation B) Unemployment rate C) Employment level in the country D) Aggregate demand of the country E) Aggregate supply in the country

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter21: Unemployment

Section: Chapter Questions

Problem 6SCQ: Is the increase in labor force participation rates among women better thought of as causing an...

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Concept explainers

Demand and Supply

The concept of demand and supply is important for various factors. One of them is studying and evaluating the condition of an economy within a certain period. The analysis or evaluation of the demand-side factors is important for the suppliers to understand the consumer or individual behaviour. The evaluation of supply-side factors is important for the consumer or individuals to understand that what kind of combination of an economic good or what kind of economic good and services he or she should consume to maximise his utility and minimise the cost. Therefore, in microeconomics, both of these concepts are extremely important to have an idea that what exactly is going on in the economy.

Question

2.1. Explain the changes in the following economic variables with proper justification during Peaks of Business cycle
in the diagram.
A) Inflation
B) Unemployment rate
C) Employment level in the country
D) Aggregate demand of the country
E) Aggregate supply in the country

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