Answered: Explain why unemployment rate is…

Business

Economics

Explain why unemployment rate is getting increase in financial crisis?

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter13: Money And The Financial System

Section: Chapter Questions

Problem 4.10P

See similar textbooks

Related questions

Q: List and discuss the various reasons that contributed to the financial crisis that occurred in 2008.

A: The main reason behind the financial crisis of 2008 is due to the burst of the housing bubble. Too…

Q: Feds put $23.5 trillion back into the market, which Went back into the rising bill stock market.…

A: The Federal Reserve (The Fed) in the United States exists to keep the economy stable and growing by…

Q: Feds put $23.5 trillion back into the market which Went back into the rising bill stock market.…

A: 2007-2008 debt crisis is also known as subprime debt crisis which is caused by a large amount of…

Q: What is the most important way for an economy to recover from an economic crisis caused by credit…

A: Credit denotes a loan, while credit growth denotes the taking of more loans. Credit expansion is the…

Q: In detail, Identify and explain the reasons of financial crisis 2008-2009 . (at least 4)

A: Financial crisis 2008-09: The financial crisis of 2008-09 which is also referred to as the "Great…

Q: Using equation of exchange explain what should central banks do to avoid long run inflation?

A: According to the quantity theory of money, the equation of exchange can be given as follows-

Q: Critically analyses the Mortgage Markets and its impact on the regional economies

A: There are two kinds of primary and secondary markets for mortgages. The lender is the one dealing…

Q: How does the Central Bank affects the interest rate?

A: Money Supply: It is the total quantity of money in the economy at a point in time. Money supply and…

Q: Explain how financial crises lead to a credit crunch and a recession

A: The financial crisis refers to the situation of failure of financial system of an economy due to any…

Q: Brief description of a named economic crisis e.g., 2007 to 2010 financial crisis.

A: Financial crisis affects the entire economy. Finance is considered foremost part of economy. Crisis…

Q: What was a result of the burst of the "dot com" bubble? Stock market prices quickly recovered. Use…

A: When talking about 'dot com' bubble, it is the market situation when economy faced slow down during…

Q: If the nation is currently in a recession, name one thing the Federal Reserve can do to affect the…

A: The monetary policies are those policies which are enacted by the central bank of a country to…

Q: What is the relation between social economic and the financial crisis? What is the impact of…

A: Solution: Economics: It is the study of understanding different aspects of economy. Economy: It is…

Q: What practical difficulties will central bank face if it varied natural rate of interest?

A: The neutral rate of interest or sometimes what is referred to as the natural rate of interest is the…

Q: Why do credit spreads risesignificantly during a financial crisis?

A: Credit Spread refers to the difference in the yield obtained on financial fixed income instruments…

Q: While considering Pakistan’s current financial crisis, how would you analyze the economic policies…

A: In the recent future, Pakistan has seen heightened neglect in the development sector, with an…

Q: many people keep their savings in the piggy banks, it does not help the financial system to function…

A: Banks and other financial institutions give amazing chances to saving and contributing by people,…

Q: What is the importance of Central Bank in nation?

A: Central banks play a crucial role in ensuring financial and economic stability. They help in…

Q: Assignment: Do research about the Financial Crisis on year 2008-2009. Explain what impact it gives…

A: The 2008 financial crisis can be largely traced to the burst of the housing bubble. The banks have…

Q: and explain the reasons of financial crisis 2008-2009. (at least 4)

A: The financial crisis in 2008 -09 was caused by financial industry deregulation and fraud in the…

Q: (a) What is a Financial Crisis? (b) Can Financial Crises be predicted? (e) How have Financial Crises…

A: Finance The handling of money is referred to as finance. It could also imply providing financial…

Q: How do financial markets help the economy? What are the key financial tools for the macroeconomy?

A: Macroeconomics is the study of aggregate of the economy. It was first derives by the economist…

Q: Heavy buying of the 3-month Treasury bill, considered one of the safest investments aroun a…

A: Government bonds or debt securities with a maturity of less than a year are considered short-term…

Q: During the press conference the governor of the Bank of Canada mentioned that Canada is now in…

A: Government and central bank are important for the economy. Some countries have certain resources in…

Q: Introduction to the global financial crisis 2008

A: Trade is the concept that explains the buying and selling of goods and services in exchange for…

Q: Please write a summary on Financial Crisis 2007-2008?

A: The 2007-2008 financial crisis that is also known as the Global Financial Disaster, was a…

Q: explain why an increase in financial frictions is a keyelement in financial crises

A: A financial crisis is a situation when the financial assets and instruments like real estate and…

Q: Following are some ways by which some of the challenges in the financial system in Ghana may be…

A: The following are the means through which financial Institutions in Ghana can promote confidence…

Q: 1. What are the requirements for a sound financial system? 2. The great economist Milton Friedman…

A: As per the guidelines, only the first question can be answered. 1. A sound financial system is…

Q: Cite reasons why lenders are exercising caution when extending credit to borrowers during a…

A: \With the monetary development seriously affected, optional spending across families has diminished…

Q: How the Bank of Canada might attempt to stimulate an economy that is going through a period of…

A: Bank of Canada can implement monetary policy during the period of contraction.

Q: What is the primary reason of the occurence of Global Financial Crisis of 2008

A: The financial crisis 2007-08 was primarily caused by deregulation in the financial industry.

Q: When financial crisis hit the nation, how it can impact on the financial market and what is the…

A: A financial crisis is the market situation in which the value of the price of assets see a steep…

Q: 25. The financial crisis resulted in bad economic conditions, but the financial crisis also had…

A: Disclaimer: Since you have asked multiple questions, I am providing you with the answer to the first…

Q: Briefly discuss the reasons behind the global financial crisis in 2007 - 2009. Discuss the UK…

A: A. The global economic crisis was brought about by the meeting up of a few primary just as business…

Q: During the third quarter of 1997, Japanese GDP was falling at an annual rate of over 11 percent.…

A: The actions by the monetary authorities/government to either expand or tighten the economy in terms…

Q: What is stagflation caused and why are the politics of crisis management difficult?

A: Stagflation is described as a period of slow economic growth and relatively high unemployment—or…

Q: If a government gains from unexpected inflation when it borrows, why would it choose to offer…

A: Government of a country generally chooses to offer indexed bonds when there are unexpected gains…

Q: Why is credit so important to our economy? Can the economy function without credit

A: Banks acquire from resident and rent it out as credit to assembling which is the principal job of…

Question

Explain why unemployment rate is getting increase in financial crisis?

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Brief description of a named economic crisis e.g., 2007 to 2010 financial crisis.
What is the 2008 financial crisis. What are its causes and effects?
Explain how financial crises lead to a credit crunch and a recession.
What is financial crisis? What causes financial crisis? Is it possible it could happen again? Give example.
Explain the Global Financial Crisis.
When financial crisis hit the nation, how it can impact on the financial market and what is the short and long term implications to society?
Following are some ways by which some of the challenges in the financial system in Ghana may be Promote confidence in the economy I)How can this be done?
What is the primary reason of the occurence of Global Financial Crisis of 2008
What is the relation between social economic and the financial crisis? What is the impact of financial crisis on social economic?
Explain the events that transpired in the 2008 financial crisis.
4. List and discuss the various reasons that contributed to the financial crisis that occurred in 2008.
Discuss the stability/instability of the financial system. Include: c) Historic frequency of financial crises/recessions. d) Your opinion on how to best management the financial system. Give correct typed explanation.thank you.