Graph an economy which suffers a negative supply shock. How does this effect inflation (increase/decrease) and unemployment (increase/decrease)?  What is the name for this situation?   What is the relationship between unemployment and inflation as the economy heads into a recession normally?  How about the relationship as the economy moves to the peak of the business cycle?

During the last two years there has been a depletion of groundwater in the nation because of a severe drought in the country. 1. Which of the two graphs above is correct? Explain why. 2. What happened to real GDP in the selected graph? Why? 3. What happened to the price level in the selected graph? Why? 4. What happened to aggregate demand and aggregate supply Why?

Inflation and Unemployment in China - provide a brief explanation of the implications of the observed trends for the particular business Starbucks   with References & links to the references please.

how do we answer this?

Deflation is particularly bad for an economy in recession for all of the following reasons EXCEPT a-with deflation people spend less  expecting prices to be lower in the future b- the rising prices makes goods more expensive c- with deflation the value of assets declines while the value of loans does not - this lowers wealth and further depresses spending

Assuming the economy is currently in an expansion, which phase will follow? Then place the remaining phases of the business cycle in order = Peak = Expansion = Contraction = Trough

Recovery won't Improve unemployment Despite some optimism about the seeds of recovery, the Congressional Budget Office (CBO) sees joblessness rising. The CBP sees unemployment peaking at 10.4% next year from an average of 9.3% this year, before it falls to 9.1% in 2011. Source: Fortune, August 25, 2009 Why does unemployment continue to rise as an expansion begins? OA. The unemployment rate is a leading indicator of the business cycle, so unemployment continues to rise as an expansion begins. OB. In the early stages of an expansion, the labor force decreases. OC. In the early stages of an expansion, unemployment increases as firms lay off workers in an attempt to cut costs. D. As an expansion begins, previously marginally attached workers look for jobs, exceeding the number of people hired.

In macroeconomics,  how can you tell when someone has worked too hard or too little during a period of inflation?  Please answer numerically and graphically.

as you analyze the dismal United States economic environment, you notice that unemploymentis decreasing, durable goods orders are increasing, housing starts are on the rise, and capital spending budgets are gettinglarger. Based on your outstanding knowledge gained in BUSI 1301, you are now confident that the overall economy is headed towards what phase of the general business cycle?

When an economy dips into a recession, consumers will often be relatively pessimistic about the future for an extended period time. How will this pesimism affect the speed and strength of the recovery?