The college graduates of 2000 could hardly have asked for better luck. The unemployment rate dropped to 4.1 % in May 2000- roughly, the lowest level in a generation- and employers were literally scrambling for new hires. Starting salaries rose, many graduating seniors had numerous job offers, and some firms even offered $10,000- $20,000 bonuses to students who signed the dotted line. Discussion: (i) Briefly explain and justify what prevailing situation was taking place in the year 2000. (ii) Identify and explain two fiscal policies and two monetary policies that the US government may have used to correct this situation. (iii) Use a diagram to illustrate the correction measures.
The college graduates of 2000 could hardly have asked for better luck. The unemployment rate dropped to 4.1 % in May 2000- roughly, the lowest level in a generation- and employers were literally scrambling for new hires. Starting salaries rose, many graduating seniors had numerous job offers, and some firms even offered $10,000- $20,000 bonuses to students who signed the dotted line. Discussion: (i) Briefly explain and justify what prevailing situation was taking place in the year 2000. (ii) Identify and explain two fiscal policies and two monetary policies that the US government may have used to correct this situation. (iii) Use a diagram to illustrate the correction measures.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The college graduates of 2000 could hardly have asked for better luck. The
dropped to 4.1 % in May 2000- roughly, the lowest level in a generation- and employers were
literally scrambling for new hires. Starting salaries rose, many graduating seniors had numerous
job offers, and some firms even offered $10,000- $20,000 bonuses to students who signed the
dotted line.
Discussion:
(i) Briefly explain and justify what prevailing situation was taking place in the year 2000.
(ii) Identify and explain two fiscal policies and two
government may have used to correct this situation.
(iii) Use a diagram to illustrate the correction measures.
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