though more than one item may be misplaced, you will receive feedback on one misplaced item at a time. Leading economic indicators Not leading economic indicators Building permits Average duration of unemployment Housing starts Interest rates spread Manufacturers' orders for durable goods The unemployment rate Stock prices The trade deficit Answer Bank

though more than one item may be misplaced, you will receive feedback on one misplaced item at a time. Leading economic indicators Not leading economic indicators Building permits Average duration of unemployment Housing starts Interest rates spread Manufacturers' orders for durable goods The unemployment rate Stock prices The trade deficit Answer Bank

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter5: An Introduction To Macroeconomics

Section: Chapter Questions

Problem 1TY

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The college graduates of 2000 could hardly have asked for better luck. The unemployment ratedropped to 4.1 % in May 2000- roughly, the lowest level in a generation- and employers wereliterally scrambling for new hires. Starting salaries rose, many graduating seniors had numerousjob offers, and some firms even offered $10,000- $20,000 bonuses to students who signed thedotted line. Discussion:(i) Briefly explain and justify what prevailing situation was taking place in the year 2000.(ii) Identify and explain two fiscal policies and two monetary policies that the USgovernment may have used to correct this situation. (iii) Use a diagram to illustrate the correction measures.
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