is the rate of unemployment in the U.S. likely to be higher or lower one year...
is the rate of unemployment in the U.S. likely to be higher or lower one year from today? Discuss. What fiscal and monetary policies would be most effective in accelerating the movement of the economy to full employment?
Homework Answers
Answer - The unemployent rate is likely to fall in US in the nearby future with the economy moving towards the growth. The ideal rate of unemployment should be 4-5 %. Moving towards this target the government should increase the spending specially in areas of infrastructure to increase the level of employment. The fall in interest rates by fed will lead to rise in investment by the businesses and will lead to more employment. Thus these measures will help in the reduction in unemployment rate and move the economy towards level of full employment status.
Answer - The unemployent rate is likely to fall in US in the nearby future with the economy moving towards the growth. The ideal rate of unemployment should be 4-5 %. Moving towards this target the government should increase the spending specially in areas of infrastructure to increase the level of employment. The fall in interest rates by fed will lead to rise in investment by the businesses and will lead to more employment. Thus these measures will help in the reduction in unemployment rate and move the economy towards level of full employment status.
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is the rate of unemployment in the U.S. likely to be higher or
lower one year...
WEEK 6: MONETARY POLICY AND FISCAL POLICY A healthy economy typically has low rates of unemployment...
WEEK 6: MONETARY POLICY AND FISCAL POLICY A healthy economy typically has low rates of unemployment and steady prices. Low rates of unemployment means that the economy is operating at its full potential. To ensure the economy continues to operate at potential GDP (full capacity where all savings are invested in production functions, and where all those who wish to work can find a job, and all other factors of production are fully utilized in the production function), governments use...
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 highe
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.
In 2019, the United States is experiencing an unemployment rate that is below its natural rate...
In 2019, the United States is experiencing an unemployment rate that is below its natural rate of unemployment. That is, its labor force is more than fully employed. However, the country is suffering from a rising fiscal deficit, a rising government debt/GDP ratio, and an expanding current account deficit. In addition, after years of quantitative easing in the wake of the 2008-09 financial crisis and economic recession, the Federal Reserve must now roll back its quantitative easing and shrink its...
8) Consider an economy in long-run equilibrium with an inflation rate () of 0.08 per year and a natural unemployment rate of 0.05. Suppose Okun's law holds and a one percentage point unemplo...
8) Consider an economy in long-run equilibrium with an inflation rate () of 0.08 per year and a natural unemployment rate of 0.05. Suppose Okun's law holds and a one percentage point unemployment rate reduces real output by 2% of full-employment output. The expectation-augmented Phillips curve is givep by increase in the т . ne . 2.5 (u-005). Consider a two distr maErTTelintyear,π .006 and me . 008. In the second year, π.004 and㎡. (a) In the first year, what...
can you help with question 2a 2). The average unemployment rate in western Europe is higher...
can you help with question 2a
2). The average unemployment rate in western Europe is higher than in the United States. (4 points) a). Explain one difference between the European and U.S. economies that is consistent with more structural unemployment in Europe. b). Explain one difference between the European and U.S. economies that is consistent with more frictional unemployment in Europe. A typical worker Covered by unemployment insurance in 8 receives 50% of her Former wages For 26 week. In...
8. The Phillips curve is based on the observed negative relation between the rate of inflation and the unemployment rate. That is, decreases in the unemployment rate tend to be associated with in...
8. The Phillips curve is based on the observed negative relation between the rate of inflation and the unemployment rate. That is, decreases in the unemployment rate tend to be associated with increases in the rate of inflation a) Given what you know about the relation between the unemployment rate and the GDP gap, restate the Phillips curve in terms of inflation and the GDP gap. b) Based on the AD-IE model, and given your answer in (a), explain why...
If the economy is at the natural rate of unemployment with the level of real GDP...
If the economy is at the natural rate of unemployment with the level of real GDP at potential output, what would expansionary fiscal or monetary policy do to the economy? How would the economy be effected in the short run and long run? Does the Phillips Curve theory explain what happens?
a) Find the time series data (quarterly or monthly) on the unemployment rate, inflation rate and...
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...
If the unemployment rate for the U.S. economy rises from 7 to 11 percent during a...
If the unemployment rate for the U.S. economy rises from 7 to 11 percent during a year, we can conclude that actual GDP exceeds potential GDP. actual GDP is less than potential GDP. the economy is experiencing only frictional unemployment. the natural rate of unemployment for the U.S. economy has risen.
1. Is the Phillips curve a myth? Intertemporal tradeoff between inflation and unemployment After the World...
1. Is the Phillips curve a myth? Intertemporal tradeoff between inflation and unemployment After the World War II, empirical economists noticed that, in many advanced economies, as unemployment fell, inflation tended to rise, and vice versa. The inverse relationship between unemployment and Inflation, was depicted as the Phillips curve, after William Phillips of the London School of Economics. In the 1950s and 1960s, the Phillips curve convinced many policy makers that they could use the relationship to pick acceptable levels...
8) Consider an economy in long-run equilibrium with an inflation rate () of 0.08 per year and a natural unemployment rate of 0.05. Suppose Okun's law holds and a one percentage point unemployment rate reduces real output by 2% of full-employment output. The expectation-augmented Phillips curve is givep by increase in the т . ne . 2.5 (u-005). Consider a two distr maErTTelintyear,π .006 and me . 008. In the second year, π.004 and㎡. (a) In the first year, what...
can you help with question 2a
2). The average unemployment rate in western Europe is higher than in the United States. (4 points) a). Explain one difference between the European and U.S. economies that is consistent with more structural unemployment in Europe. b). Explain one difference between the European and U.S. economies that is consistent with more frictional unemployment in Europe. A typical worker Covered by unemployment insurance in 8 receives 50% of her Former wages For 26 week. In...
8. The Phillips curve is based on the observed negative relation between the rate of inflation and the unemployment rate. That is, decreases in the unemployment rate tend to be associated with increases in the rate of inflation a) Given what you know about the relation between the unemployment rate and the GDP gap, restate the Phillips curve in terms of inflation and the GDP gap. b) Based on the AD-IE model, and given your answer in (a), explain why...
1. Is the Phillips curve a myth? Intertemporal tradeoff between inflation and unemployment After the World War II, empirical economists noticed that, in many advanced economies, as unemployment fell, inflation tended to rise, and vice versa. The inverse relationship between unemployment and Inflation, was depicted as the Phillips curve, after William Phillips of the London School of Economics. In the 1950s and 1960s, the Phillips curve convinced many policy makers that they could use the relationship to pick acceptable levels...
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