How do inflation and unemployment affect the economy in terms of growth (use U.S. as an...
Assess the recent 20-year U.S. unemployment and inflation data. Do the current U.S. unemployment and inflation data confirm the short-run Phillips curve?
How has the U.S. economy been doing in recent years? Why do you think that is? Gather relevant economic statistics, such as the growth rate of real GDP, the unemployment rate, and the inflation rate, to support your case. • Did any of the data from the project surprise you? Which data? Why? Does this data indicate a growing, stagnant or declining economy? What does this data tell you about the health of our economy? Why? Find a current news...
a) Find the time series data (quarterly or monthly) on the unemployment rate, inflation rate and real GDP growth in the U.S. from 1980 to 2005, and discuss whether the Okun’s Law is valid or not. Then, discuss whether the Phillips curve exists in the U.S. economy (you have to report your data source and or the website). b) Which recession is most severe in terms of its depth and the duration of unemployment? c) Why unemployment rises when the...
What is the effect of COVID-19 on the economy of Kuwait, in terms of GDP growth, unemployment, inflation/deflation, fiscal deficits, net capital outflow, balance of payments and the credit market
You are given that the economy has a natural rate of unemployment of 3.3%. Let inflation change by -0.3 percentage points. Assuming a slope of 1/3, use the Phillips Curve and Okun's Law to fine the corresponding unemployment rate. Note: find short run output first, then the unemployment rate. Do not type the "%" sign, and round to two decimal places. Example: .0815 = 8.15% should be entered as 8.15
Suppose that the economy is experiencing a high level of inflation rate and unemployment is below the natural rate. How does the economy return to the natural rate of unemployment if this higher inflation rate persists?
1. If the long-run Phillips curve shifts to the right, for any given rate of money growth and inflation the economy will have a. higher unemployment and higher output.b. higher unemployment and lower output.c. lower unemployment and higher output.d. lower unemployment and lower output.
2. Explain how will each of these affect the economy in the short run and the long run (in terms of output, unemployment and inflation) a. Government decides to take policy to reduce deficit. b. Construction workers goes on a strike for 2 months. c. US dollar depreciates with respect to euro d. People become more optimistic about the economy e. Productivity of U. S workers increase due to technological advancement
1. How the AD/AS Model incorporation Growth, Unemployment, and inflation. 2. What causes changes in unemployment over the short run? 3. How a central bank excutes monetary policy? 4. What is rule of law with examples
“Inflation and unemployment are probably two of the most used economic indicators of how well an economy is doing.” Discuss the relationship between inflation and unemployment using the Philips curve.