Attempts Keep the Highest/2 11. Inflation and unemployment Suppose that the government believes the economy is not producing goods and services at its optimal level. In an attempt to stimulate the economy, the government increases the quantity of money in the economy by printing more money. demand for goods and services in the economy, leading to goods and services. This, in turn, leads to a This monetary policy action run, the change in prices induces firms to produce prices for products. In the short unemployment level. Based on this analysis, the economy faces the following trade-off between inflation and unemployment: Higher inflation leads to unemployment.

a. Examine the fundamental causes of a nation’s business cycle fluctuations. Also, examine the relationship between total spending by government and consumers in a nation and the location of the countries’ GDP on the business cycle.   b. 1. Suppose you have $200,000 in a bank term account. You earn 5% interest per annum from this account.You anticipate that the inflation rate will be 4% during the year. However, the actual inflation rate for the year is 6%.Calculate the impact of inflation on the bank term deposit you have and examine the effects of inflation in your city of residence with attention to food and accommodation expenses. 2. The Australian Bureau of Statistics (ABS) reported in May 2017 that the civilian population in Australia over 15 years of age was 20.8 million.Of this population of 20.8 million Australians, 13.5 million were employed and 0.7 million were unemployed.Calculate Australia’s labor force and the number of people in the civilian population who were not in…

Which of the following will most likely cause a change in the natural rate of unemployment? Select one: a. expansionary fiscal policy b. contractionary monetary policy c. contractionary monetary policy d. none of the other alternatives is correct e. expansionary monetary policy.

Use the macroeconomic theories explained in the course to write a paper explaining how the Canadian government used a combination of an easy money policy with an expansionary fiscal policy to reduce the negative effects of Covid-19 on the Canadian economy. Why did these policies helped to create the current inflation. Create your own graphs or refer to graphs in your textbook to illustrate your answer.

If an economy is achieving the goals of full employment and price level stability, then: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a b C the unemployment rate is equal to the natural rate of unemployment and inflation rate is in the range of 2%. both the unemployment rate and the inflation rate must be equal to 0%. all people willing and able to work have a job and nominal incomes are increasing by at least the rate of inflation. Your answer it is likely that the economy is on the brink of a recession because the two goals cannot be met at the same time.

In the short run, expansionary monetary or fiscal policy is expected to O increase; decrease. inflation and output. increase; increase. decrease; decrease. O decrease; increase.

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2. Who in an economy is the big winner from inflation? Explain.

Inflation Rate (%) 4 PCLR с 45 7 Unemployment Multiple Choice -PC₂ PC₁ Rate (%) Refer to the diagram. Assume that the natural rate of unemployment is 5 percent and that the economy is initially operating at point a where the expected and actual rates of inflation are each 6 percent. If the actual rate of inflation unexpectedly falls from 6 percent to 4 percent, then the unemployment rate will Opermanently fall from 5 percent to 4 percent. Help permanently rise from 5 percent to 7 percent.