22. In a country with a population of 50 million people, there are 20 million children under the age of 15 years, 16 million employed, 9 million pensioners, 4 million unemployed and 1 million people who are physically unable to work. The unemployment rate in this country equals A 10%. B 13,3%. C 20%. D 25%.
Q: 132.) You decide to lend your sister, who has never defaulted on a loan (ie. ρd =0), $1000 for one…
A: Real interest rate can be calculated by using the following formula.
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A: The labor market of the economy determines the equilibrium wage rate and the number of individuals…
Q: 12 - If the unemployed people actively looking for work in an economy are 2,000,000, what is the…
A: Number of workers=18,000,000 Unemployed people=2,000,000
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A: Unemployment refers to the situation where the person is willing to and able to work but unable to…
Q: In a country with population of 50 million people, there are 20 million children under age of 15, 16…
A: The unemployment rate is given as = Number of unemployed/ Total labor force The labor force consists…
Q: 18. What is the unemployment rate in an economy where the entire adult population can be categorized…
A: Answer: Given, Employed = 32 million Unemployed = 2 million Labor force = employed + unemployed…
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A: The formula is, Real change in revenue as percentage = [{1 + Nominal change in revenue as…
Q: Inflation and interest rates a) Define/explain the consumer price index. b) Suppose that the nominal…
A: Note: Since, you've posted question with multiple sub-parts, we will solve the first the first three…
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: rate of inflation
A: The inflation calculates the increment in price level. There are different types of inflation:…
Q: Describe the potential policy options for reducing unemployment and explain how they work 2.…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: 4) Suppose the number of employed people in an economy is 6,532,451. The unemployment rate in this…
A: Labor force = unemployed + employed Let's denote unemployed as X => Labor force = X + employed…
Q: 12) In a small town of 125 people there are 25 people under 16. Out of the remaining persons, there…
A: Here, given information is, Total population: 125 people Under 16: 25 people Retired: 10 people…
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A: The nominal interest rate is the percentage increase in money you pay the lender for the use of the…
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A: In economic terms, employment refers to the condition of having or being employed.If someone must be…
Q: 7. Assuming the total population is 100 million, the civilian labor force is 60 million, and 54…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
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A: In an economy, the unemployment rate is the economic measure that provide information about the…
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A: Inflation (I) = 2.55% Bank interest rate (R) = 7.75%
Q: 12) In a small town of 125 people there are 25 people under 16. Out of the remaining persons, there…
A: The unemployment rate is the percentage of the total labor force that is unemployed but actively…
Q: B. The real interest rate is 4 percent and the nominal interest rate is 7 percent.
A: When someone lets the other person borrow any asset, money, or property, it is known as lending. An…
Q: 12) In a small town of 125 people there are 25 people under 16. Out of the remaining persons, there…
A: here we calculate the unemployment rate by using the given information , we classified the employed…
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A: Labor force is the sum of employed people and unemployed people.
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A: Nominal interest rate is the rate of interest before the adjustments of inflation. given: Nominal…
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A: Following are the given values: Nominal interest rate = 5.25% Expected inflation = 1.50% Actual…
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A: According to question, total employed people are 121,166,640 The unemployment rate in the…
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A: Unemployment rate refers to the rate at which people of an economy are unemployment over the total…
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A: Health of the labor market: There are two main constituents that determine the health of the labor…
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A: As per the Fisher equation, Real interest rate = Nominal interest rate - Inflation rate
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A: Given, employed= 312,545,372. unemployment rate = 7.4 percent, or .074. the labor force…
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A: Frictional unemployment : Frictional unemployment is a type of unemployment that arises when workers…
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A: CPI or consumer price index is given by the formula: CPI= ( Cost of the market basket in current…
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A: Correct answer is :- a discouraged worker.
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A: GDP(gross domestic product) is referred to the value of all goods & services that are produced…
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A: a)i) Unemployment rate is given as =(Unemployed/labor force)*100 = [Unemployed/(employed+…
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A: Price index, calculated using a set of numbers that allows comparison of prices from any two points…
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- 1-)What is the difference between a real rate and a nominal rate? Say you got a raise of 10% of your salary but inflation increased by 15%, what is your real percent increase in salary? How should we use this in every day life to make changes that will make us wealthier over time. 2-) How can we use the Aggregate Supply and Demand Model to help us understand what the government is doing in the current Covid19 economic crisis? 3-) What is the basic difference between Fiscal and Monetary Policy, how are they used during recessions? 4-)9. Suppose in an economy Emmaland, the Beveridge curve can be described as v = p β − u 2 , where u is the unemployment rate, v is the vacancy rate, β is a parameter. Note that 0 < u < 1, 0 < v < 1, and β > 0. In Year 0, the vacancy rate and unemployment rate in Emmaland were both 5%. In Year 1, the vaccancy rate increases to 6% and the number of employed workers is 962,583. What is the size of labor force in Year 1?15. Suppose that the relationship between inflation rate (π) and unemployment rate (u) is described by the following equation: πt – πte = (m + z) – αut where m = 0.05, z = 0.04, and α = 2. In this economy, the authorities keep unemployment rate at 4% forever. a. If the modified Philips curve describes the relationship between π and u correctly, how should “πte” be specified? Rewrite the equation using this specification. Assume that πt–1 = 1%. Compute πt, πt+1, and πt+2. b. Do you believe the answer in part (a)? Why or why not? c. Derive the natural rate of unemployment.
- 13. Which of the following cannot be used to measure inflation?a) GDP deflationb) Expenditure methodc) Producer price indexd) Consumer price indexWhich of the following equations in correct?a) Nominal interest rate = Real interest rate-Inflationb) Real interest rate = Nominal interest rate + inflationc) Real interest rate = Nominal interest rate x inflationd) Real interest rate = Nominal interest rate-inflation2. List some limitations of GDP as a perfect measure of economic wellbeing. How are each of the following likely to impact the unemployment rate?a) The length of time workers are eligible to receive unemployment insurance payments doubles.b) The minimum wage is increased.c) More companies make information on job openings easily available on Internet job sites.3) Suppose that on January 1, 2019 a bank lends $20,000 to a person. The bank and the individual both agree that the real interest rate charged on the loan should be 10% and the loan is going to be totally paid ($20,000 plus interest), in a one-time payment, on December 31, 2020. Suppose the two parties to this transaction can perfectly foresee what the inflation rate for this period is going to be. Given this information, what is the nominal rate the Bank has to charge on this loan? Assume that the CPI is computed at the beginning of each year.
- Give typing answer with explanation and conclusion 13.The zero curve is downward sloping. Define X as the 1-year zero rate, Y as the 1.5-year zero rate and Z as the forward rate for the period between 1 and 1.5 years. Which of the following is true ? a. X is less than Y which is less than Z b. X is less than Y which is greater than Z c. X is greater than Y which is greater than Z d. X is greater than Y which is less than ZAssume that next year’s wage rate will be 3 percent higher than this year’s because of inflationary expectations. The actual inflation rate is 4 percent. At the beginning of next year, will the real wage be higher, lower, or the same as today? Explain. Assume that Mark gets a fixed-rate loan from a bank when the expected inflation rate is 3 percent. If the actual inflation rate turns out to be 4 percent, who benefits from the unexpected inflation: Mark, the bank, neither, or both? Explain. How does each of the following changes affect the real gross domestic product and price level of an open economy in the short run? Explain. The depreciation of the country’s currency in the foreign exchange market.Suppose 25,000 persons become unemployed. You are given the following data about the length of unemployment spells in the economy:Duration of Spell (in months) Exit Rate1 0.602 0.203 0.204 0.205 0.206 1.00where the exit rate for month t gives the fraction of unemployed persons who have been unemployed t months and who “escape” unemployment at the end of the month.a. How many unemployment-months will the 25,000 unemployed workers experience?b. What fraction of persons who are unemployed are “long-term unemployed” in that their unemployment spells will last five or more months?c. What fraction of unemployment months can be attributed…
- 7. Suppose that people expect inflation to equal 3%, but in fact, prices rise by 5%. Describe how this unexpectedly high inflation rate would help or hurt the following: A.) the governmentB.) a homeowner with a fixed-rate mortgageC.) a union worker in the second year of a labor contractD.) a college that has invested some of its endowment in government bondsjust do 4 3) Suppose that on January 1, 2019 a bank lends $20,000 to a person. The bank and the individual both agree that the real interest rate charged on the loan should be 10% and the loan is going to be totally paid ($20,000 plus interest), in a one-time payment, on December 31, 2020. Suppose the two parties to this transaction can perfectly foresee what the inflation rate for this period is going to be. Given this information, what is the nominal rate the Bank has to charge on this loan? Assume that the CPI is computed at the beginning of each year. Nominal interest rate refers to the interest rate before taking inflation into account. Nominal can also refer to the advertised or stated interest rate on a loan, without taking into account any fees or compounding of interest. Therefore the interest charged by the bank is 10% only with no adjustments of inflation rate over the year. The amount of money charged by the bank as interest in one year equals to ; 20000$× 10/100= 2000$.…1. Suppose that 20,000 of the employed switches to jobs in the underground economy. When interviewed by STATIN, 50% of these switchers report that they are not working and not seeking work, while the other 50% report that they are not working but seeking work. a. Explain what happens to the official unemployment rate and the “true” unemployment rate. b. Illustrate and carefully explain the impact of an increase in the income tax rate from 25 percent to 35 percent on the demand for labour, supply of labour, equilibrium wage and level of employment.