Explain why Kennedy sees the rate of unemployment ‘shooting up’ to 10 per cent. In your answer discuss the significance of the participation rate in affecting the mid-April unemployment rate. 1b If, as the Government currently states, the JobKeeper allowance is discontinued in early September, use the Aggregate Expenditure model to discuss the range of impacts this may have on aggregate expenditure in this year’s December Quarter (this is the period from September to December 2020). Be sure to outline the economic reasoning behind your answer and to clearly reflect this in your AE model depiction.
READ THE ABOVE ARTICLE AND ANSWER THE FOLLOWING QUESTIONS:
Question 1.
Consider the statement:
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The trick, however, is that though the underlying position won’t be getting much worse, |
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we’ll see the rate of |
Answer the following, using information from the article:
1a Explain why Kennedy sees the rate of unemployment ‘shooting up’ to 10 per cent. In your answer discuss the significance of the participation rate in affecting the mid-April unemployment rate.
1b If, as the Government currently states, the JobKeeper allowance is discontinued in early September, use the Aggregate Expenditure model to discuss the range of impacts this may have on aggregate expenditure in this year’s December Quarter (this is the period from September to December 2020). Be sure to outline the economic reasoning behind your answer and to clearly reflect this in your AE model depiction.
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