Macroeconomics
4th Edition
ISBN: 9780393602487
Author: Jones, Charles I.
Publisher: W. W. Norton & Company
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Question
Chapter 9, Problem 8E
a)
To determine
b)
To determine
The short-run level of output according to the Okun’s law.
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If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals:
a)32%.
b)25%.
c)20%.
d)8%.
If the number of people classified as unemployed is 20,000 and the number of people classified as employed is 230,000, what is the unemployment rate?
a) 8.7%
b) 9.5%
c) 8%
d) 11.5%
Minimum wage had been increased from $12.5 in 2013 to $15 in 2014. By examining these variables (unemployment rate, inflation rate and economic growth rate) across the three years, determine whether the increased minimum wage had the expected impact? Justify your response.
Year
2013
2014
2015
Unemployment (%)
3.7
3.3
3.4
Inflation (%)
5.2
5.7
4.7
Economic Growth (%)
2.23
-0.91
1.82
In responding start by explaining what you expect to happen to the three variables due to the increase in the minimum wage then discuss what you are seeing based on the data. Finally conclude by discussing if what you are seeing is in line with expectations. You can also provide a reason why it did or didn't match up with expectations.
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- Suppose that the labor force in 2008 was 154.3 million and unemployment was 8.9 million. What was the unemployment rate in 2008?A 0.058%B 10.2%C 5.8%D 9.3%arrow_forwardAssume that the level of structural, frictional and seasonal unemployment in this simple economy is 4%. The cyclical unemployment rate is Total Population Working-Age Population Employed Unemployed Question 30 a Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. n 3.1% b 4.1% 5.1% 100,000 70,000 50,000 5,000 d 6.1% Karrow_forward132.) You decide to lend your sister, who has never defaulted on a loan (ie. ρd =0), $1000 for one year. At the end of the year, she pays you $1050. Suppose you expected the inflation rate, πe, to be 3%. However, at the end of the year, you learn that the inflation rate was actually 6%. What was the realrate of interest that you expected to receive? Are you better or worse off than expected? 2%; worse 2%; better 1%; worse 1%; betterarrow_forward
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