(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.

(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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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