Instructions The Mystery of Low Unemployment and Low Inflation: Background Information: The actual unemployment rate is lower than the estimated natural rate of ur happens we are in an "inflationary gap" and that wages and prices should rise. Natural Rate of Unemployment (Long-Term) Civilian Unemployment Rate 10 9 Inflationary Gap: The actual unemployment rate natural rate 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Even though the unemployment rate has fallen to lowest levels in 20 years the inflation rate has remaine Federal Reserve. Economists are searching for explanations. 1. What is surprising about today's low rate of inflation. 2. Why is the Fed concerned about such a low inflation rate? 3. How could technological progress lead to low inflation? 4. How could an aging population lead to low inflation? 5. How could globalization lead to low inflation? Percent 8

Instructions The Mystery of Low Unemployment and Low Inflation: Background Information: The actual unemployment rate is lower than the estimated natural rate of ur happens we are in an "inflationary gap" and that wages and prices should rise. Natural Rate of Unemployment (Long-Term) Civilian Unemployment Rate 10 9 Inflationary Gap: The actual unemployment rate natural rate 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Even though the unemployment rate has fallen to lowest levels in 20 years the inflation rate has remaine Federal Reserve. Economists are searching for explanations. 1. What is surprising about today's low rate of inflation. 2. Why is the Fed concerned about such a low inflation rate? 3. How could technological progress lead to low inflation? 4. How could an aging population lead to low inflation? 5. How could globalization lead to low inflation? Percent 8

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. The inflation-unemployment relationship The following graph shows the combinations of unemployment and inflation that existed in the United States for selected years between 1961 and 1969. Click on any blue point (circle symbol) on the graph to get its exact coordinates. You can also use the black point (cross symbol) to find the coordinates of other points along the curve. (Note: You will not be graded for any adjustments made to the graph.) INFLATION RATE (Percent) 5.0 1969 4.5 4.0 3.5 1968 + 1967 3.0 - 2.5 2.0 1.5 1.0 0.5 1985 1964 1983 1961 0 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 UNEMPLOYMENT RATE (Percent) What happened to the inflation rate between 1965 and 1969? The inflation rate decreased from 1.9% to 1.5%. The inflation rate increased by 3 percentage points. The inflation rate decreased by 2 percentage points. O The inflation rate increased from 2.9% to 4.3%. ?
www.m WO The country of Swedway monitors price changes on several hundred goods in 4 categories: food, housing, transportation and household goods, in accordance with the following CPI table: Calculate the contribution to inflation for each category and determine the overall inflation rate in Swedway. CATEGORY WEIGHT (%) PRICE CHANGE (%) CONTRIBUTION TO INFLATION RATE Food 40 10 Housing 30 15 Transportation 20 20 Household Goods 10 25 Total 100
Decoding 'Natural' Rate of Unemployment Unemployment is a normal feature of our economy and the Congressional Budget Office believes the "natural" unemployment rate increased from 5 percent in 2007 to 6 percent in 2012. Source: Wall Street Journal, September 7, 2012 Provide some reasons why the natural unemployment rate might have increased. The natural unemployment rate might have increased because of A. an increase in the minimum wage and an increase in the number of firms paying an efficiency wage B. an increase in cyclical unemployment during the 2008-2009 recession C. fewer people receiving unemployment benefits D. a decrease in frictional and structural unemployment
The rate of inflation in Zimbabwe rose in 2018 from 10.6% to 577.21% in 2020. What was the positive effect of this unexpected inflation on the residents of the country? O It helped debtors It helped creditors ) Helped those people on fixed incomes None because everybody is hurt by inflation
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PLEASE EXPLAIN WITHOUT PLAGIARISM
4. As of July 2015, the unemployment rate in the United States was 5.5 percent. What would economists call this level of unemployment? A. Structural unemployment B. Cynical unemployment C. High level of unemployment D. Normal unemployment
O Macmillan Learning Unemployment and Inflation - End of Chapter Problem How will the following changes affect the natural rate of unemployment? Frictional unemployment falls a. The government reduces the duration of unemployment benefits. incorrect Frictional unemployment rises b. More teenagers focus on their studies and do not look for jobs until after college. Structural unemployment falls d. Union membership declines Answer Bank Structural unemployment rises e. Greater access to the internet leads both potential employers and potential employees to use the internet to list and find jobs
The CPI inflation rate from 1982 to 2002 is ________ and from 2002 to 2022 is ________. The difference in the rates of inflation is ________. A. 46.9 percent; 33.7 percent; -13.2 percentage points B. 46.9 percent; 33.7 percent; -28.1 percentage points C. 88.4 percent; 50.9 percent; -42.4 percentage points D. 88.4 percent; 50.9 percent; -37.5 percentage point
Question 23 The term natural in the phrase natural unemployment rate implies that the unemployment rate is as low as it can be when it is at the natural rate. that unemployment is at an ideal rate when it is at the natural rate. the unemployment rate that prevails when real GDP equals potential GDP. that the unemployment rate is at the highest rate it can be when it is at the natural rate. that the unemployment rate is at the rate it would be at if there were no minimum wage laws.
↑ Inflation Measure WPI Headline WPI Headline 1 WPI Food 0.34 WPI Core 0.82 CPI Headline 0.32 CPI Food 0.41 CPI Core -0.04 Inflation Measure WPI Headline WPI Food WPI Core CPI Headline CPI Food CPI Core WPI Headline 1 0.55 0.93 0.58" 0.34" 0.77" A: 1997 02-2008 04 WPI Food WPI Core CPI Headline CPI Food CPI Core 1 0.20 0.90 0.93 0.63 1 0.09 0.26 -0.32 B: 2009 01-2019 04 WPI Food WPI Core CPI Headline CPI Food CPI Core 1 0.27 0.91" 0.89 0.74* 1 0.39 0.10 0.67* Revisit Later 1 0.94 0.81 1 0.92* 0.86* 1 0.58 1 0.61* 1 1 Table 2: Correlation matrix of inflation measures (Please ignore the meaning of the * sign) Q. Based on Table 2, we can draw the conclusion that- Select an option & Clear Response The direction of movement between CPI core and WPI headline is not necessarily the same across the years Post 2008, WPI core and WPI headline have moved in opposite directions Prior to 2009, the correlation between WPI core and WPI headline has been very weak Post 2008, CPI core and WPI headline…