Households tend to increase their spending during a recession because they realize that more spending will cause firms to hire more workers and the problem of unemployment will be solved.” Do you agree or disagree? Explain.

Q: Cyclical unemployment        -------is unemployment caused by a recession. As output​ (GDP) is​…

A: Cyclical unemployment is caused when there is a loss of job due to downfall in economy. Hence,…

Q: Give your opinion to this statement: The problem of unemployment can only be solved by opening as…

A: Unemployment is a situation in which a person who is willing and able (capable) to work do not find…

Q: Why might a favorable change to the economy such as technological change or a decrease in the price…

A: Frictional unemployment alludes to the unemployment which exists in any economy because individuals…

Q: Evaluate the claim that “recessions are caused by high job separation rates”  ([Hint: Think about…

A: The claim that "recessions are caused by high job separation rates" is a complex one, and it…

Q: address the problem of an economic recession caused by high inflation, governments and central banks

A: An economic recession is a prolonged period of considerable fall in economic activity that often…

Q: Which of the following is true when an economy is operating at its natural rate of unemployment?…

A: Answer 1.  The natural rate of unemployment is the lowest rate of unemployment when inflation is…

Q: What do you expect about the unemployment rate and inflation rate when we have the actual level of…

A: Actual level of output refers to the production of goods and services that are actually produced in…

Q: ssume an economy at a steady-state unemployment rate with a separation rate of 0.20 per year, a job…

A: The unemployment rate is the proportion of workers in the labour force who are unemployed but…

Q: If the cyclical unemployment rate is 1.31% and the economy is producing at 92% of potential output,…

A: The Okun's law tries to explain the impact of a percentage change in unemployment rate over the…

Q: The U-1 rate for April 2020 was 1.1%.The U-3 rate for April 2020 was 14 .7%. Based on the answers to…

A: The unemployment rates reported by the Bureau of Labor Statistics (BLS) in the United States come in…

Q: Prompt You hear on the news that the unemployment rate has fallen from 10% to 8%. The president…

A: In an economy, an employed person is someone who falls in working age bracket and is involvved in an…

Q: Suppose a number of workers decide to quit their jobs and enter retirement. Assuming this is the…

A: Answer: (1). Increase (2). Decrease Explanation: If some number of people quit their jobs and enter…

Q: When Full employment GDP is less than equilibrium GDP, the economy faces A) Recession B) Inflation…

A: Full employment refers to the economic situation where all the labor resources in the economy are…

Q: During recessions, income a) falls and unemployment rises b) and unemployment both fall c) rises and…

A: Recession is a situation in which economic activities of a country falls.

Q: Explain how and why it might be possible for the unemployment rate to fall during the worst part of…

A: A recession is a period of economic contraction. During recession businesses experience decreased…

Q: During the Great Recession of 2008, many workers became discouraged and dropped out of the labor…

A: Labor force is a sum of people unemployed and people employed.

Q: In the U.S., the Great Depression: lasted from 1990 through 2009. O started in December 2007 and…

A: The US economy witnessed the great economic depression due to the bad credit and housing bubble in…

Q: Discuss the ways in which unemployment can be reduced on the demand side of the economy

A: Unemployment: - unemployment is that portion of the labor force that is able to do work and looking…

Q: f the current unemployment rate is 8% and the natural rate of unemployment is 6%, what do we know…

A: The natural rate of unemployment is the lowest level of unemployment that an economy can sustain…

Q: If actual GDP is growing more rapidly than potential GDP, then:  A) the GDP gap is becoming wider…

A: Actual GDP is the total value of goods and services that an economy produced during a period of…

Q: if the economy is in a recession, who is at fault?

A: Recession refers to the situation of lower economic activity. During recession, economic activities…

Q: 1) The Economy cannot be considered fully employed unless the measured unemployment rate is below…

A: Full employment is defined as a situation in which all people who are available and looking for work…

Q: Suppose that actual output is $120 billion and potential (full-employment) output is $156 billion.…

A: The output gap is a measure of the difference between actual output, the level of goods and services…

Q: Nation's Economic Pain Deepens The unemployment rate jumped to 5.5% in May 2008 from 5% in April…

A: The unemployment rate is the percent of the labor force that is jobless.

Q: True or False. Explain why. The business cycle is the primary reason behind demand-deficient…

A: The correct answer is true So we can say that where I think the business cycle is the primary reason…

Q: Explain what happens to the economy if there is a temporary consumption boom that lasts for one…

A: please find the answer below.

Q: iscuss two methods that can be used to determine the full-employment rate of unemployment and what…

A: The full Employment rate of unemployment means neutral unemployment, which is calculated as Total…

Q: Which of the following are true of an economy operating with a negative GDP gap? Check all that…

A: Gross Domestic Product (GDP at MP): This is the gross market value of all the final commodities…

Q: Even an economy that is operating at peak efficiency will have a positive unemployment rate.…

A: Unemployment rate is the percentage of labor labor willing and able to work, are unable to find a…

Q: True or false? If unemployed workers become so frustrated from being unable to find new full-time…

A: The unemployment rate: It is the percentage of unemployed workers in the total labor force. Workers…

Q: An economy is at full employment. Which of the following can create an inflationary gap. Group of…

A: An inflationary gap exists when the demand for goods and services exceeds production due to factors…

Q: employment

A:

Q: Why there is direct relationship between unemployment and recession in 2020?

A: The rising unemployment rate cause decreases in output growth which leads to recession and due to…

Q: Give a solution to fix a serious national recession

A: The recession is a situation of declining the Gross Domestic Product of the economy due to the…

Q: as you analyze the dismal United States economic environment, you notice that unemploymentis…

A: All the countries goes through changes and fluctuations in the economic activities. Sometimes, the…

Q: Graph an economy which suffers a negative supply shock. How does this effect inflation…

A: Supply shocks are the changes in supply of a good which can change price and output level Negative…

Q: Given an economy with an unemployment rate of 7%,  GDP growth of 1% and an inflation rate of 1%,…

A: There are four phases of business cycle Expansion Peak Contraction Trough