An economy has an unemployment rate of 11% and real GDP grows by 2.5% annually. A treasury official says next year's expected growth rate of 4% is ecpected to bring down the enemployment rate to 8% within one year. However, an economists disagrees as it is non consistent with macroeconomic research. -who is correct? the treasury official or the economist and why?

== Assume that Co = 40, G = 220, T = 120, I = 150, X = 44, Z = M = 54, b = mpc = .75 and t =.25, the actual unemployment rate = 5.7%, and the natural unemployment rate is 5.1%. A one dollar increase in G will cause Y to increase by dollars. $2.439 $2.392 $2.305 $2.286 $2.253

Let’s see just how much high expected inflation can hurt incentives to save for the long run. Let’s assume the government takes about one‑third of every extra dollar of nominal interest you earn. You must pay taxes on nominal interest. However, if you are rational, you will care mostly about your real, after‑tax interest rate when deciding how much to save. ?i ??=?Eπ=π 23×?23×i (23×?)−?(23×i)−π Nominal interest rate Inflation (no surprises) Nominal after‑tax return Real after‑tax return 15% 12% 10% -2% 6% 3%     12% 9%     90% 87%     900% 897%     Calculate the nominal and real after‑tax return for each case.Nominal interest rate = 6%, inflation = 3% Nominal after‑tax return:   % Real after‑tax return:   % Nominal interest rate = 12%, inflation = 9% Nominal after‑tax return:   % Real after‑tax return:   % Nominal interest rate = 90%, inflation = 87% Nominal after‑tax return:   %…

Question 41 For questions 41-43, consider the data in the table below for a simple economy. The unemployment rate for this simple economy equals Total Population 100,000 Working-Age Population 60,000 Employed 30,000 Unemployed 10,000 O (30,000/40,000) x 100 Percent O (20,000/60,000) x 100 Percent O (20,000/70,000) x 100 Percent O (10,000/40,000) x 100 Percent You learn that of the 60,000 working-age individuals in this economy, 10,000 are discouraged workers that would take a job if offered one but are not actively searching for work. The unemployment rate considering the discouraged workers is O (30,000/60,000) x 100 Percent O (20,000/50,000) x 100 Percent O (20,000/40,000) x 100 Percent O (15,000/50,000) x 100 Percent Question 43 You learn that of the 30,000 employed individuals in this economy, 10,000 are involuntary part-time workers that would like to work 20 more hours per week. The unemployment rate considering the involuntary part time workers is O (15,000/45,000) x 100 Percent…

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In response to the covid-19 pandemic, many governments responded by an economic stimulus package to mitigate the negative impact of the pandemic on affected families. Changes in economic policies will frequently have an impact on the unemployment rate. Explain whether each of the policy changes described is likely to: (1) affect frictional or structural unemployment and (2) increase or decrease the measured unemployment rate.a) An increase in the number of weeks of employment insurance that unemployed workerscan receive. b) An increase in the minimum wage rate  a) The government introduced new job-training programs to help people who lost their jobs in the affected sectors switch to other sectors.

a) What is Okun's law? Suppose the unemployment rate is 5% and actual output is 1% below potential output. Assuming Okun's law holds with "Beta" = 2, what will be the rate of frictional plus structural unemployment? Explain briefly the relationship between output gap and unemployment. Okun's law: 100*(-=-B(u-u*)

Consider the market for loanable funds. Suppose the demand for loans is given be i=9-Q+π, and the supply of loans is given by i=Q/2+π, where π represents inflation. Now suppose that π=5 (instead of 3, in the previous problem). What is the equilbrium quantity of loans and what is the corresponsing interest rate?      Q*=8, i*=6     Q*=3, i*=6     Q*=6, i*=8     Q*=6, i*=6

What is inflationary gap? Select one: When aggregate expenditures are greater than the full employment level causing a demand pull-inflation When aggregate expenditures are greater than full employment level causing cost push inflation None of the options are correct It is the gap between a developed nation GDP and an under-developed/ developing nation GDP When aggregate expenditures are inadequate to bring about a full employment level

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