What is the role of inflationary expectation in determining the level of unemployment in a country. (Hint: you can explain using historical examples during the 1970s)

Q: Suppose that half of those officially counted as unemployed become discouraged and drop out of the…

A: Unemployed people in the city = 150,000. Size of labour force= 220000+80000+150000= 450000…

Q: Discuss during which phase of the business cycle the inflation is most pronounced

A: During Expansion Phase which phase of the business cycle the inflation is most pronounced.

Q: Determine whether there is a relationship between the unemployment rate and inflation rate.

A: Inflation rate gives the percentage change in price level over a period of time.Unemployment rate is…

Q: Suppose that the natural rate of unemployment is 5.7 percent. If unemployment has for some time been…

A: It is known that Natural unemployment rate is 5.7%. The actual unemployment lies between the range…

Q: Explain the trade-off between unemployment and inflation by citing a concrete example.

A: General increase in price level for goods and services in the economy is known as inflation.…

Q: How can we determine the economic loss (or gain) in present worth caused by inflation?

A: Present worth is defined as the present value of the future amount of money or income for a given…

Q: In which year did the economy above most likely have an actual unemployment rate equal to the sum of…

A: The economies around the globe are involved in various economic, and financial transactions, and…

Q: Using data from the bank of Ghana website from 1970 -2018,show the relationship between inflation,…

A:

Q: : This economy is not currently at its natural rate of unemployment.

A: Natural rate of unemployment refers to the unemployment existing in the economy regardless of the…

Q: What is a discourage worker? How might the exclusion of the discouraged workers underestimate the…

A: In an economy, people are classified as different in terms of their employment status such as…

Q: Name several forms of indexing in the private and the public sector?

A: "Since you have asked two questions, we will answer only first question for you. If you have any…

Q: The next note that changes in oil prices can affect the inflation-unemployment outcome. Explain what…

A: The changes in the oil prices affect both inflation and employment outcomes as the global demand of…

Q: Who would be the least affected by inflation? (Benefit from Inflation) a man with a fixed interest…

A: Inflation is the general increase in price level which lowers the purchasing power of all the people…

Q: Briefly describe what is meant by the non-accelerating inflation rate of unemployment (NAIRU)

A: Employment is a situation in which job opportunities are available, and people are having jobs.…

Q: If the labor force of 160 million people is growing by 1.2 percent this year, how many new jobs have…

A: Unemployment refers to a situation in which the workers are willing to offer their labor force at…

Q: Why shouldn’t every adult without a job be classified as part of the official unemployment rate?…

A: Unemployment rate: The unemployment rate is a useful indication of underutilization of the labor…

Q: In Country X, the population is 100 million, 60 million people are employed, 5 million are not…

A: Labor force is the sum of unemployed and employed workers. People who are willing and able to work…

Q: What is the Inflation-free interest rate? Give an example?

A: Inflation refers to a continuous increase in the general price level of goods and services in an…

Q: The price level was listed as 100 in 2010 and in 2020 was listed as 115. If a person's salary is…

A: Inflation rate expresses the average variation in the price of all commodities and services during…

Q: Suppose a country surveys households and finds that 135 million people can be classified as being…

A: Total number of Employed = 135MillionTotal number of Unemployed = 7Million Total number Labour force…

Q: Government statisticians have estimated that . frictional unemployment is 3.5%; and structural…

A: Natural Rate of Unemployment = Frictional Unemployment + Structural Unemployment It is defined as…

Q: In a country with a working-age population of 22 million, 16 million are employed, 2 million are…

A: labor force=employed + unemployedlabor force=16+2labor force=18 millions

Q: Examine the costs of deflation.

A: We can define deflation as a reduction in the overall level of prices in an economy.

Q: During which period is inflation and unemployment inversely related?

A: The inverse relationship between inflation and unemployment can be explained by the short-run…

Q: analyse the impact that the increasing number of social grants may have on the unemployment rate

A: Social grants are set up to help improve ways of life in the public arena and are given to…

Q: Evaluate how each of the following individuals would be affected by unanticipated inflation: (a) A…

A: Unanticipated inflation is the one which is not predicted and hence affects the people more greatly…

Q: How has the official unemployment rate been criticized for overestimating and underestimating…

A: The official unemployment statistic is frequently chastised for underreporting and exaggerating the…

Q: Mark Lai, a student of agricultural science in the developing country Mikatra, notes that the demand…

A: Mark Lai is a student of agriculture science in Mikarta, who notes that the demand for rice has…

Q: If the labor force of 160 million people is growing by 2.6 percent this year, how many new jobs have…

A: Given: The labor force is = 160 million Growing at a rate of = 2.6% To Find: The new jobs to be…

Q: Explain and analyze different government policies which affect the unemployment rate in Pakistan?

A: In order to control and influence the economy of a country, fiscal policy is the means by which a…

Q: Suppose a country surveys households and finds that 140 million people can be classified as being…

A: The unemployment rate is the level of the labour force without a task. It is a reactive result,…

Q: Under what condition would an increase in the unemployment rate be a positive sign?

A: Answer: Frictional unemployment is a temporary phenomenon, which is caused due to cyclical economic…

Q: Does the BLS method of assessing inflation imply that consumers actually purchase the same goods and…

A: The consumer price index is an economic instrument used to measure the changes in the price level in…

Q: In terms of CPI, define the general inflation rate?

A: Inflation is the increase in the price level of goods and services in the market. This reduces the…

Q: Explain any two causes of unemployment in the economy!

A: According to the given question In Simple words we can say that unemployment is generally known to…

Q: Consider an economy where: The real rate of interest The nominal rate of interest 4.11% 7.09%…

A: Real Interest Rate = 1 + Nominal Interest Rate1 + Inflation Rate -1 Real interest rate = Nominal…