Question

rt answer questions table below uses data for a specific year. All values are in thousands. Fill in the blank entries he table. 2 points ountry Adult Population Labor Force Employed Unemployed Unemployment Labor-Force Participation Rate Rate apan rance Germany 109,474 62.510 3,500 2,577 5.30 26,870 39.591 57.41 70,159 9.69 Q3. 4 points IMF Executive Board Concludes 2018 Article IV Consultation with the United Arab Emirates On November 26, 2018, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultationl with the United Arab Emirates. The economy is starting to recover from the 2015-16 slowdown caused by a decline in oil prices. Growth momentum is expected to strengthen in the next few years with increased investment and private sector credit, improved prospects in trading partners, and a boost to tourism from Expo2020. Non-oil growth is projected to rise to 3.9 percent in 2019 and 4.2 percent in 2020. The oil sector's prospects have also improved with higher oil prices and output. Overall real GDP growth is projected at around 3.7 percent for 2019-20. Inflation is expected to remain low, notwithstanding the introduction of the value-added tax (VAT) earlier in 2018. Although nonperforming loans rose during the slowdown, banks remain liquid and well capitalized Source: IMF Country Report No. 19/35 Explain why the decline in oil prices had affected the UAE economy (using your own words and from the discussions that we did during the lectures). 1point 1. 2. Discuss the GDP component that contributes to the growth of the UAE economy in the medium term (in the next few years). 1point 3. Why there is an introduction of the value-added tax (VAT) in the UAE and how we call this in the economy. 1 point 4. Discuss the relationship between the oil sector and the oil prices. Explain 1 point 6

Answer 1

Country	Adult population	labor force	employed	unemployed	unemployment rate	labor force participation rate
Japan	109474	66010	62510	3500	5.3	60.29
France	46804	26870	24293	2577	9.5	57.41
Germany	70159	39591	35755	3836	9.69	56.43

Labor force=no. of people employed + no. of people unemployed

Unemployment rate=(no. of people unemployed / labor force) X100

Labor force participation rate=(Labor force/adult population) x100