Answer the following questions
1. A. Assume that the total population is 200, the size of the labor force is 100, the amount of people employed is 90, and the amount of people unemployed is 10. Calculate the unemployment rate?
B. In general, approximately what is the lowest unemployment rate that can reasonably expected and why?
2. A. Draw and label a graph depicting the business cycle.
B. Explain what is happening during each phase of the cycle with:
output,
employment,
and inflation.
3.What is the shape of the AS curve in the SR versus the LR and why?
4. Given the central macroeconomic debate: will the economy self-adjust on its own or does the government need to intervene. What would Keynes say are the main reasons why, during a contraction, the economy won’t self adjust?
5.Explain dissavings and how people can dissave.
6. A. Draw AD/AS curves showing macroeconomic equilibrium at full employment level of output and an example of a recessionary gap.
B. Explain the recessionary gap.
7. In reaction to an economic shock, explain the two root causes that could push households to decrease consumption, which could then potentially create a recession.
8.Describe the spending multiplier effect and how it impacts the economy.
9.Given the 4th quarter GDP report (released Thursday, March 28), what is your expectation for the unemployment rate in March and inflation? Explain why you have those expectations, relying on our discussion of the ideal rates for each measure.
https://www.bea.gov/news/2024/gross-domestic-product-fourth-quarter-and-year-2023-third-estimate-gdp-industry-and
10.Find an article, either from a newspaper, the internet, or a magazine and explain how it relates to any topic in macroeconomics. If possible, scan in or provide the web address of the article.
(Your response should be at least three short paragraphs)
