Purchase Solution

Unemployment rate

Not what you're looking for?

Ask Custom Question

. Use the following to answer questions a. and b.: All figures are in billions of dollars:

a. What is the GPD?
b. What is the NDP?

2. Use the IS curve below for Questions a. and b.:

a. At what point (1, 2, 3, 4 or 5) will the economy be located if aggregate output is below the level of planned spending and, if aggregate output is below the equilibrium level of output.
b. At what point (1, 2, 3, 4 or 5) will the economy be located if aggregate output is below the level of planned spending, and there is an unplanned decline in inventories?

3. Use the LM curve below for Questions a. and b.:

a. At what point (1,2,3,4 or 5) will the economy be located if people are holding more money than
they desire?

b. At what point (1,2,3,4 or 5) will the economy be located if the interest rate is below the
equilibrium level and people are holding less money than they desire?
.

4. Using demand and supply analysis, what are the effects on the exchange rate (appreciation or depreciation) between the British pound and the Japanese yen from:

a. decrease in Japanese interest rates
b. decrease in the price of British goods
c. decrease in British interest rates

5. Assume the government cuts its purchases by $120 billion. As a result, the budget deficit is reduced by $40 billion, private domestic saving decreases by $10 billion, disposable personal income decreases by $80 billion and the trade deficit is reduced by $15 billion. By how much has national income (Y) changed?

6. Suppose that the economy starts at equilibrium and the mpc = 0.8. What would be the effect of a 300 increase in taxes once all the rounds of the multiplier process are complete?

7. Answer the next question(s) on the basis of the following information about the hypothetical economy (all figures are in millions).

a.What is the labor force?
b. What is the unemployment rate?

Attachments
Purchase this Solution
Solution Summary

Unemployment rate is defined in the case.

Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

View More Free Quizzes
Related BrainMass Solutions

  • Calculation of the Unemployment Rate

    Unemployment rate = 0.0948 x 100% Unemployment rate = 9.48% b.

  • A spike in the unemployment rate - the biggest in more than

    b) Why might the unemployment rate tend to actually underestimate the unemployment problem, especially during a recession? c) How does the unemployment rate in May compare to the estimated natural unemployment rate?

  • NATURAL RATE OF UNEMPLOYMENT

    If the economy currently has a frictional unemployment rate of 2 percent, structural unemployment of 2 percent, seasonal unemployment of 0.5 percent, and cyclical unemployment of 2 percent, what is the natural rate of unemployment?

  • Unemployment Information



    1970
    1 - Unemployment Rate = Total Employment / [Population * Labor Force Participation Rate]
    Unemployment Rate = 1 - Total Employment / [Population * Labor Force Participation Rate]
    Unemployment Rate = 1 - [85.0 / (145.5 * 0.610

  • Natural rate of unemployment computation

    of Unemployment = 71% This solution computes the natural (long-run) rate of unemployment.

  • Unemployment research

    I ran the data for several groups and obtained these figures: Unemployment Rate July 2007 4.7 July 2008 5.7 Unemployment Rate - 16-19 yrs.

  • Discussion on Local Unemployment Rates

    What factors affect unemployment? In February 2014, the unemployment rate for the county of San Joaquin was 13.1%. For this same time period, the California unemployment rate was 8.5% and the national rate was 7.0%.

  • Draw an AS/AD diagram

    Inflation rate will accelerate if actual unemployment rate declined to a level lower than full employment unemployment rate (called the natural rate of unemployment).

  • Important Aspects of Measuring Unemployment.

    Proposed by the American economist Milton Friedman (1912-1992), NARU refers to the rate of unemployment, which occurs when all markets are in an equilibrium position. Thus the natural rate of unemployment is the equilibrium rate of unemployment.

  • Suppose that the natural rate of unemployment in a particula

    448142 Suppose that the natural rate of unemployment in a particular year is 5 percent and the actual rate of unemployment is 9 percent. Use Okun's law to determine the size of the GDP gap in percentage-point terms.

View More Related Solutions