2. (a) Using your knowledge of the circular flow of income and interpreting the data given above, explain how changes in unemployment rate affected aggregate demand and aggregate supply. (b) Between 2007 and 2014, unemployment fell from 8.7% to 7.1%. Some argue that government attempts to reduce unemployment inevitably led to trade-offs with other macroeconomic policy objectives. Analyse the tables above and explain whether you agree or not.

2. (a) Using your knowledge of the circular flow of income and interpreting the data given above, explain how changes in unemployment rate affected aggregate demand and aggregate supply. (b) Between 2007 and 2014, unemployment fell from 8.7% to 7.1%. Some argue that government attempts to reduce unemployment inevitably led to trade-offs with other macroeconomic policy objectives. Analyse the tables above and explain whether you agree or not.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter21: Unemployment

Section: Chapter Questions

Problem 41CTQ: Unemployment rates have been higher in many European countries in recent decades than in the United...

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