If an economy’s self-correcting mechanism worksslowly, should the government necessarily pursuean activist policy to eliminate unemployment? Why orwhy not?

Q: Suppose that the Phillips curve is Tit = Tmet-0.5(ut- un ), and the aggregate production tt tn…

A: The Phillips curve states that inflation and unemployment have an inverse relationship. Higher…

Q: What is the difference betw een the Keynesian model and the classical model when it comes to…

A: The Classical Model suggests that the economy is always at the full employment level of output,…

Q: In the ADT/ASI model, the equilibrium inflation rate is O a. The target inflation rate O b. The rate…

A: The ADπ/ASπ model refers to the representation of the goods market through mathematical and…

Q: What is the relationship between potential output and the natural rate of unemployment?  a. If the…

A: [a] Natural rate of unemployment is the sum of frictional, structural, and seasonal Thus, the…

Q: According to the Bathtub labor market model, řunemployment rate is now t 12%, th separation rate…

A: Given: Unemployment rate=12% separation rate(s)=1.5% Job finding rate(f)=15% To find: Number of…

Q: The unemployment rate of a certain country shortly after the Great Recession was approximately 5t +…

A: Given  The employment rate is given by  ft=5t+301t2+23    0≤t≤4 t =0 corresponds to the beginning of…

Q: In an AD/ASAD/AS diagram, __________________________ could explain a rise in cyclical unemployment?…

A: Cyclical unemployment is associated with the economic slowdown, recession.  When a person lost his…

Q: The business cycle involves the comparison between Unemployment and inflation. O Real GDP and…

A: Business cycle refers to increase and decrease in real GDP. It refers to expansion and contraction.

Q: What is the eqution and shape of the modem aggregate supply curve according to imperfect infomation…

A: Since the question you have posted consists of multiple parts, we will answer the first two parts…

Q: c. Now that the macroeconomy is in a disequilbrium, what happens in the labor market? O A.…

A: If there's a rise in aggregate demand, like what's experienced during inflation, there'll be an…

Q: In the simplest version of the Keynesian model, income is determined by: O A. consumer spending. O…

A: When talking about Keynesian model, it beleives in expenditure method to compute the national income…

Q: oes it make sense that wages would be sticky downwards but not upwards? Why or why not?

A: Wage is an installment typically finished by a business to a worker for administrations presented by…

Q: ing Not to Apply for Unemployment Benefits? Need 100 words you summarize in own words what the…

A: There is a decline in the proportion of individuals receiving the Unemployment Insurance (UI) which…

Q: What is the theory of rational expectations? low does it apply to the debate about the rade off…

A: The theory of rational expectation is described to be that model technique that is merely used in…

Q: and also A Phillip's curve is given by = + 10% - 2u, where T₁-1 = 2%. Calculate the natural rate of…

A: In Phillip's curve equation : If at natural rate of unemployment , πt = πte Inflation equals…

Q: Assuming that the booming economy is currently at an inflation rate such that unemployment is below…

A: The macroeconomic equilbrium in an economy is determined by the aggregate demand and aggregate…

Q: Which of the following two types of unemployment occur even when the economy is healthy and growing?…

A: Answer : The right answer is option (c) frictional and structural unemployment. Frictional…

Q: Regardless of many assumptions, an equilibrium business-cycle model can go a long way in matching…

A: Business-cycle: It refers to the conditions under which the growth and decline have been taken into…

Q: How would itaffect the unemployment atethe Bureau of Labor Statistics counted asunenployed boh…

A: Workers who want to work and looking for work but unable to find job, are known as unemployed…

Q: If the economy were at a steady-state unemployment rate with a separation rate of 0.02 permonth and…

A: The unemployment rate is used to measure the unemployed labor force in an economy. It shows the…

Q: Economists use labor-market data to evaluate how well an economy is using its most valuable…

A: The measure that depicts the population that is willing and able to work but is not able to find…

Q: a. Define “time inconsistency” of economic policy

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: Let u be the unemployment rate at period t, u be the natural rate of unemployment, and Y be the…

A: Q11 The Okun's Law says that for every 1% rise in unemployment GDP declines by 2%. We can use the…

Q: According to Okun's law, if a country's expansionary output gap grows by 1 percentage points, then…

A: According to the law, a 2% increase in output corresponds to a 1% decline in the rate of cyclical…

Q: s appropriate. If the point showing the actual rates of unemploym outheast, southwest, northeast )…

A: 9)1.1970,federal and state  2.vertical axis, horizontal axis  Â Â

Q: ow has the corona virus effected unemployment in the U.S.?

A: The unemployment is a situation, in which a person is ready and able to work, but unable to find a…

Q: Assume that in a particular year the natural rate of unemployment is 5 percent and the actual rate…

A: It is given that the natural rate of unemployment is 5% and actual unemployment rate is 9%. Then the…

Q: To achieve long term economic growth..... O a. Money is neutral O b. All answers are correct OC.…

A: Economic growth means consistent rise in GDP over period of time . There are ups and downs in the…

Q: economists were laissez-faire in their policy recommendations, having faith that the economy would…

A: Answer -

Q: Suppose that are in consumer spending causes an expansion. On the full graph, shit one or both…

A: Consumer spending is what families spend to satisfy ordinary requirements. This private utilization…

Q: Keynesian transmission mechanism is direct in nature. O True O False

A: The monetary transmission mechanism is the process by which monetary policy decisions affect the…

Q: According to the dynamic AD-AS model, what is the most common cause of inflation? O A. Total…

A: Dynamic AD-AS model presents a dynamic short-run theory of output, inflation, and interest rates.

Q: There are only two reasons for unemployment according to the classical medlel: low level of AD and…

A: According to the classical economist, an economy is self-regulating. This implies that the economy…

Q: Consider a one-period economy which experiences the destruction of some of the nation’s capital…

A: Hey, Thank you for the question. According to our policy we can only answer the first question. If…

Q: n Spring 2020, the U.S. economy once again found itself in an economic crisis, this time due to the…

A: US Government should follow the Keynesian approach. It is because covid 19 has created the situation…

Q: What kind of changesin the economy might infuence the slope of the Phillips curve?

A: The idea of driving the Phillips curve expresses the adjustment in unemployment inside an economy…

Q: LFind the national unemployment rate for June 2021: - you must know this rate for the Final Exam Has…

A: The unemployment rate refers to the fraction of the labor force that remains unemployed. The total…

Q: Define “time inconsistency” of economic policy? b) Examine why policy makers might be tempted to…

A: Due to policy inconsistency throughout time, it is a case of rulers over discretion. Policymakers…

Q: b. Why do some people say thát inflation is a tax? Who pays that tax? Whg collects that tax? How…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: a) If a country's natural unemployment rate is 5.5 percent and its actual unemployment rate is 3.5…

A: As per company policy we are supposed to answer only one question per session, so will not be able…

Q: A country has two regions, the North and the South, which are identical in all respects except the…

A: Given: The demand for labor in each region is: WN = $20 - 0.5ENWS = $20 - 0.5ES There are = 6…

Q: economics emphasizes the inherent instability in the macroeconomy and the resulting need for…

A: Government intervention can correct the economy when it is not producing at full employment.

Q: Consider an economy with a natural unemployment rate, u, of 4%. The expectations-augmented Phillips…

A: Okun’s Law states that an increase in the unemployment rate by 1 percent in the economy will lead to…

Q: e round your responses to the nearest whole number.  In 2011,  the unemployment rate was 9 percent,…

A: