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- What are the assumptions of the classical theory of employment in the economyCompare how the Keynesian School and the Classical School answer the questions on why do fluctuations in the unemployment rate exist, if perfectly competitive labour markets should naturally adjust with changes in capital investments?In 2009, Papua New Guinea had an estimated natural rate of unemployment equal to 4.7% and an actual unemployment rate equal to 4.3%. What was the size of cyclical unemployment?
- A key difference between the original Keynesian and New Keynesian approaches to the labour market , is that in the original model , nominal or money wages , are while in the New model , nominal wages areWhat is likely to be the impact of efforts towards reducing unemployment on the production potential of the economy!Give your opinion to this statement: The problem of unemployment can only be solved by opening as many jobs as possible.
- Economists believe that the United States is experiencing full employment when the unemployment rate is: A. 0% B. 7-8% C. 5-6% C.Differentiate between the unemployment rate and the natural unemployment rate as the economy movesthrough a business cycleThe next two questions involve the following situation. Consider the following data from a particular economy. Item Value Unemployment Rate 5% Labour Force Participation Rate 75% Working-Age Population 7,000,000 How many people are in the Labour Force? (A) 7,000,000. (B) 5,250,000. (C) 262,500. (D) 525,000. How many people are unemployed? (A) 7,000,000. (B) 5,250,000. (C) 262,500. (D) 525,000. 18 If you were to reject the classical dichotomy, then which of the following ideas would you be more likely to reject? (A) Monetary neutrality. (B) Liquidity preferences. (C) The Cantillion effect. (D) Velocity is stable over time.