Homework Help is Here – Start Your Trial Now!
Business
Economics
uary 2020, 15,300 people were employe . 2,700 were unemployed, and 000 people wer not in The labor for During March 2020, 160 people lost their jobs and didn't look for new ones, 140 people quit their jobs and retired, 800 unemployed people were hired 100 people stopped looking for jobs and quit the labor force, and 700 people entered the labor force to look for work. a. Calculate for February 2020 1. The unemployment rate ii. The employment-to-population ratio b. Calculate for the end of March 2020 1. The number of people unemployed ii. The number of people employed ii. The unemployment rate

uary 2020, 15,300 people were employe . 2,700 were unemployed, and 000 people wer not in The labor for During March 2020, 160 people lost their jobs and didn't look for new ones, 140 people quit their jobs and retired, 800 unemployed people were hired 100 people stopped looking for jobs and quit the labor force, and 700 people entered the labor force to look for work. a. Calculate for February 2020 1. The unemployment rate ii. The employment-to-population ratio b. Calculate for the end of March 2020 1. The number of people unemployed ii. The number of people employed ii. The unemployment rate

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter21: Unemployment
Section: Chapter Questions
Problem 45P: A country with a population of eight million adults has five million employed, 500,000 unemployed,...
See similar textbooks
icon
Related questions
Question
100%
In February 2020, 15,300 people were employed, 2,700 were unemployed, and 7,000 people were not in the labor force. During March 2020, 160 people lost their jobs and didn't look for new ones, 140 people quit their jobs and retired, 800 unemployed people were hired, 100 people stopped looking for jobs and quit the labor force, and 700 people entered the labor force to look for work. a. Calculate for February 2020 i. The unemployment rate ii. The employment-to-population ratio b. Calculate for the end of March 2020 i. The number of people unemployed ii. The number of people employed iii. The unemployment rate
Transcribed Image Text:In February 2020, 15,300 people were employed, 2,700 were unemployed, and 7,000 people were not in the labor force. During March 2020, 160 people lost their jobs and didn't look for new ones, 140 people quit their jobs and retired, 800 unemployed people were hired, 100 people stopped looking for jobs and quit the labor force, and 700 people entered the labor force to look for work. a. Calculate for February 2020 i. The unemployment rate ii. The employment-to-population ratio b. Calculate for the end of March 2020 i. The number of people unemployed ii. The number of people employed iii. The unemployment rate
Assume that the factors affecting the aggregate expenditures of the sample economy, which are desired consumption (Cd), taxes (T), government spending (G), investment (Id) and net exports (NXd) are given as follows: Cd = 600+0.6 YD, T= 100 +0.2Y, G = 400, Id = 300, NXd = 200 - 0.1Y. (a) According to the above information, explain in your own words how the tax collection changes as income in the economy changes? (b) Write the expression for YD (disposable income). (c) Find the equation of the aggregate expenditure line. Draw it on a graph and show where the equilibrium income should be on the same graph. (d) State the equilibrium condition. Calculate the equilibrium real GDP level. (e) What is the value of expenditure multiplier in this economy? If the government expenditure increases by 100 (i.e. AG=100), what will be the change in the equilibrium income level in this economy? What will be the new equilibrium level of real GDP? (f) Suppose that the potential GDP in this country is 3000. What is the output gap? How much should government change its spending (i.e. AG=?) to close the output gap?
Transcribed Image Text:Assume that the factors affecting the aggregate expenditures of the sample economy, which are desired consumption (Cd), taxes (T), government spending (G), investment (Id) and net exports (NXd) are given as follows: Cd = 600+0.6 YD, T= 100 +0.2Y, G = 400, Id = 300, NXd = 200 - 0.1Y. (a) According to the above information, explain in your own words how the tax collection changes as income in the economy changes? (b) Write the expression for YD (disposable income). (c) Find the equation of the aggregate expenditure line. Draw it on a graph and show where the equilibrium income should be on the same graph. (d) State the equilibrium condition. Calculate the equilibrium real GDP level. (e) What is the value of expenditure multiplier in this economy? If the government expenditure increases by 100 (i.e. AG=100), what will be the change in the equilibrium income level in this economy? What will be the new equilibrium level of real GDP? (f) Suppose that the potential GDP in this country is 3000. What is the output gap? How much should government change its spending (i.e. AG=?) to close the output gap?
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Unemployment
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.
Recommended textbooks for you
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Principles of Macroeconomics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781305971509
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours…
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Macroeconomics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781285165912
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou…
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS