Answered: Which phase of the business cycle can…

Which phase of the business cycle can describe the unemployment rate at its lowest and inflation is high because of the increase in demand? Downturn Expansion Peak Trough

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter12: Business Cycles And Unemployment

Section: Chapter Questions

Problem 3SQ

See similar textbooks

Related questions

Q: What are the two biggest recessions in terms of length and magnitude from the graph, the shaded…

A: Hi Student, thanks for posting the question. As per the guideline we are providing answers for the…

Q: Describe the effect of the business cycle on the inflation rate and the unemployment rate.

A: Inflation means an increase in the overall prices of goods and services in the economy during a…

Q: Rate Unemployment Type (Percent) Frictional 3.9 Cyclical 0.0 Structural 1.1 Total unemployment 5.0…

A: The NRU {"natural rate of unemployment"} is defined as the situation of unemployment that arises…

Q: Suppose that the unemployment rate is equal to the natural rate of unemployment. Which of the…

A: At full employment, Real GDP is equal to Potential GDP.

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 relationship between real GDP and potential GDP, and between the unemployment rate and…

A: The real GDP is the value of newly- produced goods and services by a nation in a given time, which…

Q: Which of the following is true when an economy is operating at its natural rate of unemployment?…

A: Answer 1. The natural rate of unemployment is the lowest rate of unemployment when inflation is…

Q: For each of the following events, choose whether the unemployment rate increases, decreases, stays…

A: (a). The correct option is the unemployment rate stays the same. This is because individuals that…

Q: When the economy of a country is operating close to its full capacity unemployment is close to zero.…

A: The correct option is cyclical unemployment is close to zero. Cyclical unemployment is a type of…

Q: happens when the economy is producing at its potential and unemployment is at the natural rate of…

A: Potential output is also called the natural GDP which says the maximum level of real GDP that an…

Q: Q)The natural rate of unemployment is the frictional rate that exists in every economy when people…

A: The unemployment rate is the important indicator which would measure the rate of unemployed people…

Q: During the Great Recession of 2008, many workers became discouraged and dropped out of the labor…

A: Labor force is a sum of people unemployed and people employed.

Q: Suppose that in an economy the structural unemployment rate is 2.1 percent, the frictional…

A: Cyclical unemployment is the type of unemployment where people loose their job as per economy trend…

Q: Provide examples and explain your answer. If inflation rises unexpectedly by 5% indicate for each of…

A: The Unexpected increase in the Inflation rate affect the following A) A union member with COLA wage…

Q: During 2008-2009, the U.S. economy suffered a 3.1% cumulative loss of GDP, which is equivalent to a…

A: Generally, an annual average growth of GDP of the U.S. is around 3%. This is because growth rate of…

Q: If the actual rate of unemployment were 4.2%, while the natural rate of unemployment were 4.8%, what…

A: Cyclical unemployment is the natural unemployment which is comprised of structural and frictional…

Q: f the current unemployment rate is 8% and the natural rate of unemployment is 6%, what do we know…

A: The natural rate of unemployment is the lowest level of unemployment that an economy can sustain…

Q: Identify each person in the table as structurally, frictionally, or cyclically unemployed.…

A: Disclaimer: Since you have asked multiple question, we will solve the first question for you. If you…

Q: Bell-land's economy had an unemployment rate of 3% then the economy went into a recession and the…

A: Okun has demonstrated the existence of a reciprocal relationship between unemployment and economic…

Q: . _______________________ happens when the economy is producing at its potential and unemployment is…

A: In macroeconomics, economic fluctuations are generally studied using the concepts of aggregate…

Q: Which of the following is the positive impact of inflation? A) Inflation causes the real value of…

A: Inflation is the rise in average price level of goods and services produced in the economy.

Q: True or False. Explain why. The business cycle is the primary reason behind demand-deficient…

A: The correct answer is true So we can say that where I think the business cycle is the primary reason…

Q: 12. Name the type of unemployment occurring in each of the causes below. (a) Frank recently lost his…

A: Unemployment is a situation where a worker who is willing and able to work is unable to find a job.…

Q: The actual unemployment rate is composed of three types. Identify each type and explain whether the…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Look at the following data: The frictional unemployment rate is 3 percent, the natural unemployment…

A: Structural unemployment = Natural unemployment - Frictional unemployment = 6.5% - 3% = 3.5%

Q: Classify each statement about the U.S. unemployment rate as true or false. True False Answer Bank…

Q: Assume that frictional unemployment is 25; structural unemployment is 50; cyclical unemployment is…

A: Unemployment rate: - it is the percentage of people out of the total labor force who are able and…

Q: Which type of unemployment is experienced by an individual who lost his job due to an economic…

A: Cyclical unemployment occurs due to the business cycle in the economy. When there is a recession,…

Q: Examine the table below. According to the data in the table what phase of the business cycle is the…

A: Answer - The economy is currently in peak phase which means that higher growth rate high rate if…

Q: What are the two biggest recessions in terms of length and magnitude in the Graph. Remember shahded…

A: Recession refers to the situation where the growth rate of real GDP is negative over the previous…

Q: What type of unemployment (cyclical,frictional,or structural) applies to each of the following: a.…

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

Q: 2) d. A positive unemployment rate—one more than zero percent—is fully compatible with full…

A: We know that even when full employment exists in the economy there may be some positive unemployment…

Question

Which phase of the business cycle can describe the unemployment rate at its lowest and inflation is high because of the increase in demand?

Downturn

Expansion

Peak

Trough

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

Explain why the neoclassical economists believe that the government does not need to do much about unemployment. Do you agree or disagree? Explain.
If inflation rises unexpectedly by 5, indicate for each of the following whether the economic actor is helped, hurt, or unaffected: A union member with a COLA wage contract Someone with a large stash of cash in a safe deposit box A bank lending money at a fixed rate of interest A person who is not due to receive a pay raise for another 11 months
What type of unemployment (cyclical, frictional, or structural) applies to each of the following: landscapers laid off in response to a drop in new housing construction during a recession. coal miners laid off due to EPA regulations that shut down coal fired power a financial analyst who quits his/her job in Chicago and is pursing similar work in Arizona printers laid off due to drop in demand for printed catalogues and flyers as firms go the internet to promote an advertise their products. factory workers in the U.S. laid off as the plants shut down and move to Mexico and Ireland.
Is the increase in labor force participation rates among women better thought of as causing an increase in cyclical unemployment or an increase in the natural rate of unemployment? Why?
Do you think perfect indexing is possible? Why or why not?
Unemployment rates have been higher in many European countries in recent decades than in the United States. Is the main reason for this long-term difference in unemployment rates more likely to be cyclical unemployment or the natural rate of unemployment? Explain briefly.
Think about the business cycle: during a recession, unemployment increases; it decreases in an expansionary phase. Explain what happens to TANF, SNAP, and Medicaid programs at each phase of the business cycle (recession, trough, expansion, and peak).