1. According to the given scatter diagram, answer the following questions. Change in Unemployment Rate 1,5 1 0,5 -0,5 -1,5 Okun's Law 1 GDP Growth Rate What is the growth rate (g1) that can keep the unemployment rate constant? If the Central Bank aims to reduce the unemployment rate from 8 percent to 7 percent, what should be corresponding GDP growth rate (g2) be?
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- Do you think perfect indexing is possible? Why or why not?The figure below depicts the economy of Altrua, which is presently in equilibrium. Enter your responses below rounded to one decimal place. Price level 340 360 380 400 420 440 460 480 500 520 Real GDP AS AD 60 LAS a. The size of its recessionary gap is $ b. The size of this gap as a percentage of its actual GDP is c. If the natural rate of unemployment is 3%, use Okun's law to calculate the amount of actual unemployment in Altrua The actual rate of unemployment is 15 %.What are the two biggest recessions in terms of length and magnitude from the graph, the shaded areas show recession and 2020 is not included? How does the unemployment rate react during the two main recessions you have identified? What was the level of the unemployment rate during the first and the last quarter of negative growth for those two recessions? why data for France for 1980s is not avaliable What do you conclude about the link between recession and the variation in unemployment?
- In an economy, if 5 percent of the employed lose their job every month (s = 0.05) and 15percent of the unemployed find a job every month (f = 0.15), what is the steady rate ofunemployment of the economy?Between January 2012 and January 2019,U.S. employment increased by 17.3 million workers,but the number of unemployed workers declined byonly 6.3 million. How are these numbers consistentwith each other? Why might one expect a reductionin the number of people counted as unemployed tobe smaller than the increase in the number of peopleemployed?11. In our model, the affects of changes on wages are ambiguous because the income and substitution effects move in opposite directions. How do (many) macroeconomists deal with this ambiguity in terms of study- ing business cycle? How do economists resolve this ambiguity when studying long term economic development?
- Suppose 25,000 persons become unemployed. You are given the following data about the length of unemployment spells in the economy:Duration of Spell (in months) Exit Rate1 0.602 0.203 0.204 0.205 0.206 1.00where the exit rate for month t gives the fraction of unemployed persons who have been unemployed t months and who “escape” unemployment at the end of the month.a. How many unemployment-months will the 25,000 unemployed workers experience?b. What fraction of persons who are unemployed are “long-term unemployed” in that their unemployment spells will last five or more months?c. What fraction of unemployment months can be attributed…In an expansionary phase (prosperity cycle) of the business cycle we would expect to see unemployment O fall, rise O rise, rise O fall, fall O rise, fall and output 34The figure below shows data points for real GDP growth and the change in the unemployment rate for 24 different years in Brazil. Brazil (1990-2013) 6. y= -0.1183x +0.4161 R = 0.2247 2009 -2 -6 -10 6. Real GDP growth (%) Based on the figure, which of the following statements is true? O The unemployment rate increased in all the years that real GDP growth was negative. O Okun's Law appears to be true in Brazil The largest decrease in the unemploymont rate was during 2009, The equation for the line of best ht predicts that unemployment won't change when real GDP growth is ON 4. NON Change in unemployment rate (%)
- Let's assume that the working-age population of a specific country D is 210 million and 120 million people are in the labor force. If 114 million people are considered employed, and 6 million are considered unemployed, what is the rate of unemployment in percentage?Maps Paraphrasing Tool ... New Tab ent - Sem 2 2022.pdf 2 / 3 G Report Grammarly 100% + + » What is the current environment in the USA and Australia? b) Define unemployment and its measurement. What is the current environment in the USA and Australia? c) Define inflation and its measurement. What is the current environment in the USA and Australia? Question 2 Assume that an economy is initially operating at the natural rate of output (full employment output). Use the AD-AS model to illustrate graphically the effects on price and output of a increase in government spending and an increase in the cash rate. Explain your assumptions with respect to the range of aggregate supply of your analysis. Question 3 Explain in detail the process of Monetary Policy transmission of an increase in the cash interest rate. Use relevant graphs to describe how a Central Bank's action on the interest cash rate ripple through the economy and lead to the target policy goal. (Three connected diagrams should…i ned this inword not handwritten Q6. Suppose the number of employed people in an economy is 312,545,372. The unemployment rate in this economy is 7.4 percent, or .074, and the labor force participation rate is 80 percent, or .80. a. What is the size of the labor force? b. How many people are unemployed? c. What is the size of the working-age population?
