2.1. Explain the changes in the following economic variables with proper justification during Peaks of Business cycle in the diagram. A) Inflation B) Unemployment rate C) Employment level in the country D) Aggregate demand of the country E) Aggregate supply in the country

2.1. Explain the changes in the following economic variables with proper justification during Peaks of Business cycle in the diagram. A) Inflation B) Unemployment rate C) Employment level in the country D) Aggregate demand of the country E) Aggregate supply in the country

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 6SCQ: Is the increase in labor force participation rates among women better thought of as causing an...

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2.1. Explain the changes in the following economic variables with proper justification during Peaks of Business cycle in the diagram. A) Inflation B) Unemployment rate C) Employment level in the country D) Aggregate demand of the country E) Aggregate supply in the country
1. To what extent is the unemployment rate reflective of the country’s unemployment situation and the state of the economy more generally?
2. Compute inflation rates for the following cases. a. Calculate the one-period inflation rate for the US in 2022 given that the CPI in 2021 was 271.0 and the CPI in 2022 was 292.7. b. Using the CPI data table from question 1, calculate the average annual inflation rate from 1970 to 1990. (Hint- this will use the constant growth formula from Lecture 3). c. Using the CPI data table from question 1, calculate the average annual inflation rate from 2000 to 2020. (Hint- this will use the constant growth formula from Lecture 3).
3. Which of the following characterises that Mr. Khalid was dismissed from his job due to a fall in aggregate demand in Lebanon? a.Cyclical unemployment b.Seasonal unemployment c.Frictional unemployment d.Structural unemployment
1. Calculating inflation using a simple price index Consider an imaginary price index, the Undergraduate Price Index (UPI), created to represent the annual purchases made by a typical undergradute. The following table contains information on the market basket for the UPI and the price of each good in 2020, 2021, and 2022. The cost of each good in the basket as well as the basket's total cost are given for 2020. Perform these same calculations for 2021 and 2022, and enter the results in the following table Streaming services Iced coffees Textbooks Notebooks Energy drinks Total cost Price index Quantity in Basket 1 150 10 8 40 Suppose this price Index uses 2020 as the base year 2020 Price (Dollars) 64 2 80 2 3 Between 2020 and 2021, the UPI increased by Cost (Dollars) 64 300 800 16 120 1.300 100 Price (Dollars) 104 2 85 2 4 2021 In the last row of the cable, calculate and enter the value of the UPI for the remaining years Cost (Dollars) Price Cost (Dollars) (Dollars) 134 2 105 4 5 2022…
1. Calculating inflation using a simple price index Consider an imaginary price index, the Undergraduate Price Index (UPI), created to represent the annual purchases made by a typical undergradute. The following table contains information on the market basket for the UPI and the price of each good in 2020, 2021, and 2022. The cost of each good in the basket as well as the basket's total cost are given for 2020. Perform these same calculations for 2021 and 2022, and enter the results in the following table. Streaming services Iced coffees Textbooks Notebooks Energy drinks Total cost Price index Quantity in Basket 1 150 10 8 40 Price (Dollars) 64 2 Suppose this price index uses 2020 as the base year. 2020 80 2 3 Cost (Dollars) 64 300 800 16 120 1,300 100 Price (Dollars) 104 2 85 2 2021 Cost (Dollars) In the last row of the table, calculate and enter the value of the UPI for the remaining years. Between 2020 and 2021, the UPI Increased by 104 300 850 16 160 1,430 110) Between 2021 and…
1. Measuring employment, unemployment, and labor force participation Consider a tiny hypothetical economy composed entirely of the following people: Alex, Becky, Clancy, Dileen, Kate, and Hubert. Each person's employment status is given in the following tabl Based on the criteria used by the Bureau of Labor Statistics (ALS), Identify each person's status as employed, unemployed, "not in the labor for not in the civilian labor force but still part of the adult population), or "not in the adult population" if not in the civilian adult population. Person Alex is a 23-year-old professional tennis player. When he's not competing, he works as a coach at a local tennisclub Becky is a 42-year-old steelworker who was just laid off by her employer She is trying to find any kind of job to help make ends meet. Clancy is a 40-year-old accountant who has been out of work for almost a year. He became so discouraged that he gave up on his job search a couple of months ago Kats is a 29-year-old who…
1) Assume that the real wage in an economy is held above equilibrium. a. Graphically illustrate how an increase in demand for labor will change the number of unemployed workers. Be sure to label the axes and the quantities of labor hired before and after the increase in demand . b. Explain in words what happens to the number of unemployed as a result of this change
Maps Paraphrasing Tool ... New Tab ent - Sem 2 2022.pdf 2 / 3 G Report Grammarly 100% + + » What is the current environment in the USA and Australia? b) Define unemployment and its measurement. What is the current environment in the USA and Australia? c) Define inflation and its measurement. What is the current environment in the USA and Australia? Question 2 Assume that an economy is initially operating at the natural rate of output (full employment output). Use the AD-AS model to illustrate graphically the effects on price and output of a increase in government spending and an increase in the cash rate. Explain your assumptions with respect to the range of aggregate supply of your analysis. Question 3 Explain in detail the process of Monetary Policy transmission of an increase in the cash interest rate. Use relevant graphs to describe how a Central Bank's action on the interest cash rate ripple through the economy and lead to the target policy goal. (Three connected diagrams should…