Q: Suppose that the natural rate of unemployment is 5% and the actual rate of unemployment is 5%.…
A: Cyclical unemployment is the component of overall unemployment that results directly from cycles of…
Q: The natural rate of unemployment is decomposed into unemployment. cyclical and frictional structural…
A: The natural rate of unemployment is a sum of structural and frictional unemployment.
Q: Frictional unemployment may exist under full employment level. True/False
A: Full employment refers to a situation whereby I almost everyone who is willing to work is having…
Q: Describe the differences between frictional and structural unemployment
A: Unemployment refers to the condition where a worker wants to work and capable of doing work but…
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A: The economies around the globe are involved in various economic, and financial transactions, and…
Q: Frictional unemployment is inevitable simply because the economy is always changing.” Do you agree…
A: Unemployment occurs in economics when people are out of work while actively looking for work. The…
Q: Cyclical unemployment is the: portion of unemployment that is due to the normal working of the labor…
A: Unemployment: - unemployment is that portion of the labor force that is able to do work and looking…
Q: When most workers are classified as not being in the labor force, when in reality they are actively…
A: Labour force is the sum of employed and unemployed. Unemployed people are people who are actively…
Q: Which of these will be the cause of a huge cyclical unemployment? а. Lack of infrastructure
A: Unemployment is an economic situation in which a person who is willing to work does not find work.…
Q: Which of the following is not a type of unemployment? A) cyclical B) Public Employees C)…
A: Unemployment is a situation in which a person who is willing and able (capable) to work do not find…
Q: Is it reasonable to expect the unemployment rate to fall to zero and economy? what is the…
A: In an economy it is quite unreasonable the expect the unemployment rate to fall to zero.
Q: What type of unemployment does each of the following represent? Explain your answers.
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: There is still unemployment rate of 3% even though the economy is at full employment. This is…
A: Full employment refers to an economic situation in which all available labour resources are used as…
Q: Does the duration of unemployment matters? Explain your answer.
A: Unemployment in the economy occurs when an individual capable of working and possess the skills to…
Q: Distinguish unemployment from the natural rate of unemployment.
A: Unemployment is a situation of a person who is actively looking for a job but unable to find a…
Q: If someone were counted in the numerator of the headline unemployment rate, would they also be…
A: Headline Unemployment Rate It is the percentage of unemployed people in the country who are not a…
Q: What is the meaning of cyclical unemployment?. Is this type of unemployment counted as part of…
A: In an economy, unemployment is classified into different types such as cyclical, frictional,…
Q: If the population is 300 million, with 70 million under the age of 16 and institutionalized, another…
A: Total population = 300 million Number of employed people =150 million Number of unemployed people…
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A: The measure that depicts individuals who are employable currently and also have been seeking a job…
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A: Unemployment means the state of the economy in which people who are fit and willing to work cannot…
Q: Which of the following is the best example of frictional unemployment? a. Bank tellers are unable…
A: The answer is c. A worker quits her current job to search for a better one
Q: The unemployment rate equals
A: The unemployment rate is the proportion of the workforce that is unemployed. It's a lagging…
Q: What term describes unemployment that results from a person having a lack of employable skills?…
A: Unemployment is a situation in which a person who is willing and able (capable) to work do not find…
Q: What types of unemployment will still exist when the economy is at the natural rate of unemployment?…
A: Unemployment rate = frictional unemployment + structural unemployment + cyclical unemployment When…
Q: What would happen to the measured unemployment rate if individuals who had previously left the labor…
A:
Q: How do frictional unemployment characteristics affect the natural rate of unemployment?
A: Unemployment does not help the economy to grow and prosper. As a result of increase in the rate of…
Q: The BLS reports six different unemployment rates--the official unemployment rate U-1 and five other…
A: BLS considers only one unemployment rate.
Q: An economy is said to achieve “full employment” when: a. The unemployment rate is equal to…
A: "Unemployment in an economy means those people of labor force in an economy who are willing,…
Q: In 2009, Papua New Guinea had an estimated natural rate of unemployment equal to 4.7% and an actual…
A: The fluctuations in the business cycle as a result of recession and booming will leads to cyclical…
Q: Unemployment that occurs during the normal workings of an economy as people change jobs and move…
A: Frictional unemployment is visible even when the economy is operating at the full employment level.
Q: Labor force participation in the United States... A. ...tends to be less cyclically volatile than…
A: In the United States, labor force participation is examined by the bureau of labor statistics and…
Q: If the nagative GDP gap is equal to 2% of the potential GDP , what is the cyclicle unemployment rate…
A: Gross domestic product is the market value of all goods and services produced in the economy in a…
Q: between the unemployment rate and the natural unemployment rate as the economy moves through a…
A: Unemployment in an economic state where an individual who is willing and able to work at the…
Q: When a country is operating at its potential GDP, unemployment is at the natural rate there is no…
A: Potential GDP is a basically a theoretical construct that estimates the value of the production that…
Q: Explain how frictional unemployment can be good for the economy.
A: Unemployment: - unemployment is that portion of the labor force that is able to do work and looking…
Q: Someone may be unemployed for all of the following reasons, EXCEPT losing a job being an entrant or…
A: A person is said to be unemployed if he/she is willing to work and looking for a job but not getting…
Q: Full employment means: no frictional unemployment. no natural unemployment. no structural…
A: Unemployment refers to the condition where people who are in the labor force and are willing and…
Q: Jeb lost his job at Amazon when drones began to deliver packages. Jeb would be classified as which…
A: There are various types of unemployment.
Q: When an economy experiences semihidden unemployment,
A: OPTIONS OTHER THEN B WRONG BECAUSE Semihidden unemployment happens when individuals are not included…
Q: The real business cycle theory believes the supply of labour is inelastic True False
A: Supply is considered inelastic in real business cycle theory.
Q: A key difference between the original Keynesian and New Keynesian approaches to the labour market ,…
A: The Keynesian model would be the earlier model in which Keynesian attempts to explain the aggregate…
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- 1.If the employment rate of output exceeds the planned aggreagte expenditure what will happen to the unemployment rate assuming that it will persist in the future?Describe the behavior of consumption, investment, labor, productivity, wages, the price level and the money supply over the business cycle both in terms of correlation, magnitude and lead vs lag. Give the economic intuition of the results on consumption, investment, produc- tivity, wages and price levels. [Note, I am looking for the correlation between each of these items and income. Give leads and lags only when the most important correlation is not contemporaneous. You may trust the author of the book on this one.]Suppose the Federal Reserve begins to Increase the supply of money at an Increasing rate. What Impact would that have on GDP, unemployment, and inflation?
- 6 19. Draw an unemployment gap graph showing AD, AS and POT GDP and the unemployment gap of Real GDP .Describe the behavior of consumption, investment, labor, productivity, wages, the price level and the money supply over the business cycle both in terms of correlation, magnitude and lead vs lag. Give the economic intuition of the results on consumption, investment, productivity, wages and price levels. [Note, I am looking for the correlation between each of these items and income. Give leads and lags only when the most important correlation is not contemporaneous. You may trust the author of the book on this one.]Suppose the economy of Hawkland is initially at full employment. Currently real GDP is $20 trillion, theprice level is 120, the money wage is $36/hour, the full employment quantity of labor is 300 billionhours per year, and the current unemployment rate is 6%. Draw a fully labeled graph depicting the aggregate goods and services market in Hawkland.Be sure to label all axes and include numerical values for variables on the axes where relevant. Providea brief explanation to the side and show any necessary calculations. Label any relevant curves with azero (0, for example: AD0) and use a zero in a circle to clearly label the initial equilibrium
- Q4. a) With respect to the Business Cycle, what is the definition of: leading indicator,coincident indicator, and lagging indicator? Provide 2 examples of each leading, coincident and lagging indicator. b) Define the three ranges of the aggregate supply curve in the AD/AS framework. c) Describe the types of unemployment classification. d) Define what is 'automatic stabiliser' in fiscal policy, and provide 2 examples.1.21 If real GDP falls from one period to another and the price level stays the same, we can conclude that…a) Nominal GDP increasedb) Inflation decreasedc) Nominal GDP also decreasedd) NDP increasedThe rate of output and planned expenditures for the economy of timbuktu are shown in the following table: Total Output(Real GDP in Billion dollars) Planned Aggregate Expenditures (Two-sector Economy) (in billions) 5,000 5,250 5,500 5,500 6,000 5,750 6,500 6,000 7,000 6,250 a. If the economy's full employment rate of output is 6.0 trillion, what will happen to the unemployment rate assuming that it will persist into future? b. What would happen to the equilibrium level of output/income if there will be an autonomous increase in investment of 250 billion?
- Consider an economy that experiences an outflow of working age people and a decline in aggregatelabour supply as a result. Suppose the aggregate labour demand curve is not affected by this change.(a) Explain, with the aid of the labour-market-equilibrium diagram, how this will affect the equilibriumreal wage and the full-employment level of employment. (b) Explain, with the aid of three separate IS-LM-FE diagrams, how this will affect real output, realinterest rate and the general price level in three steps:(i) before the general price level adjusts;(ii) when the general price level is adjusting;(iii) after the price adjustment process is completed.Is the general price level increasing or decreasing during the price adjustment process? Explain theintuition of your answer with reference to the AD-AS framework.Following a demand-side recession, what happens to full employment GDP (C+I+G) after a few recessions and over-expansion? Why is this composition problematic for the long run?Part B Consider an economy that experiences an outflow of working age people and a decline in aggregatelabour supply as a result. Suppose the aggregate labour demand curve is not affected by this change.(a) Explain, with the aid of the labour-market-equilibrium diagram, how this will affect the equilibriumreal wage and the full-employment level of employment. (b) Explain, with the aid of three separate IS-LM-FE diagrams, how this will affect real output, realinterest rate and the general price level in three steps:(i) before the general price level adjusts;(ii) when the general price level is adjusting;(iii) after the price adjustment process is completed.Is the general price level increasing or decreasing during the price adjustment process? Explain theintuition of your answer with reference to the AD-AS framework.