Q: Which of the following is required to construct a consumer price index? The choice of a base year in…
A: The Consumer Price Index (CPI) is a key economic indicator that gauges the average change in prices…
Q: Number of people Employed: 114 million The unemployment rate for this economy is____________ %, and…
A: Given : Population=250 million Labor Force= 120 million…
Q: Full employment exists when, on average, nearly two out of three adults in the labor force are…
A: Full employment implies that the labor force is efficiently used and the unemployment is usual after…
Q: Equilibrium employment is_______ hours and the equilibrium real wage rate is $ _________ an hour.…
A: Demand refers to the curve which shows various quantities of a good being demanded at different…
Q: When the government cuts the income tax rate, the real wage rate received by workers potential GDP…
A: A tax is a mandatory payment to the government. The tax amount is used by the government for public…
Q: The consumer price index (CPI) is not used to convert nominal GDP to real GDP because
A: CPI is the most broadly watched and utilized proportion of the U.S. inflation rate. It is…
Q: The amount of unemployment that an economy normally experiences is called the typical rate of…
A: Unemployment can be defined as the state of being without a job or occupation. It refers to the…
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A: When a person is unemployed, it means that they are capable of working, actively looking for job,…
Q: Refer to the graph shown below, which illustrates a third-party payer market for diabetes screenings…
A: From the given demand and supply curve, Without a third party, the market is in equilibrium when the…
Q: High employment is: The goal of maintaining a low national unemployment rate of near 0% unemployment…
A: The unemployment rate is the percentage of the total labor force that is unemployed but actively…
Q: The following are selected statistics for a given year in a hypothetical economy: Nominal GDP $500…
A: GDP refers to the total monetary value of all final goods and services that a nation can produce in…
Q: Which of the following variables falls when the national economy enters a recession? (choose all…
A: Recession: In the business cycle, recessions are a normal, albeit unpleasant, part. During a…
Q: The last decade was free of recessions and from the opening bell in January 2010 to the closing bell…
A: The percentage of the working population in the economy between the ages of 16 and 64 that is either…
Q: When there is a recessionary gap: a. Employment exceeds full employment. b. Employment equals full…
A: Gross domestic product is the value of final goods and services produced in the economy within a…
Q: Which among the following would be an indicator suggesting recession a. Discretionary purchases,…
A: The purchases of government is the main tool of fiscal policy. The fiscal policy is the tool that is…
Q: Telephone operators who have lost their jobs as a result of computerized switchboards are an example…
A: A person who is able and willing to work at the going rate of pay is said to be unemployed. It is a…
Q: If households pay $1,000 in interest payments and receive $1,200 in interest, wages equal $9,000,…
A: The gross domestic income measures the economic activity of a country by summing up the income…
Q: Y = C + / + G.
A: When the government sector is included in the income-expenditure model, the equation for aggregate…
Q: When a recessionary gap occurs, Real output exceeds the natural level of output, and unemployment…
A: The economy is at natural level of output when economy is producing at full employment.
Q: The table below shows the data for the country of Magnolia. Complete the national income accounting…
A: National income accounting refers to the government bookkeeping system which is a measure for a…
Q: During the Great Recession of 2008, many workers became discouraged and dropped out of the labor…
A: Labor force is a sum of people unemployed and people employed.
Q: Households tend to increase their spending during a recession because they realize that more…
A: Recession:- Recession can be defined as a period of economic contraction during which economic trade…
Q: Mary has been out of the paid workforce in order to raise her children. Now she decides to do paid…
A: A person is defined as a person who is of working age and is willing and able to work but could not…
Q: What is Potential GDP and a GDP Gap? If the unemployment rate is 8.6% is the economy operating above…
A: GDP is the amount of final services and goods which is produced in a particular period of time in a…
Q: Unemployment rate 5.0% Participation rate 62.5% Not in the labor force 60 million Find…
A: We can calculate the unemployment rate by dividing the number of unemployed people by the total…
Q: Which of the following is part of mandatory outlays? A. Income assistance B. Defense spending…
A: A Outlay happens when Federal cash is really paid out, not simply vowed to be paid ("obligated").…
Q: In an economy, the working-age population iš 100 million Uf this total, 75 million workers are…
A: Working-age population=100 million Employed: People who are working in a paid job=75 million…
Q: Which of the following is an effect of deflation on debt? a) Debt becomes easier to repay b) Debt…
A: The question is to pinpoint the inapplicability of debt to deflation. Understanding such a…
Q: When an economy is operating in a positive output gap (Inflationary Gap) which of the following must…
A: An inflationary gap is where potential GDP is less than the actual real GDP in the economy.
Q: When actual GDP does not rise as fast as potential GDP, the economy most likely will experience…
A: The answer to the question is as follows :
Q: Is it possible for the unemployment rate to go down while the number of unemployed workers…
A: The unemployment rate is the percentage of the total labor force that is unemployed but actively…
Q: Income tax collections: Group of answer choices rise during a recession, thus reduce the severity of…
A: *Answer:
Q: Liberals think that unemployment is underestimated because of _____________________. Conservatives…
A: Unemployed are those who falls in working age bracket, are willing and able to work at the market…
Q: When an economy is operating in a negative output gap (Recessionary Gap) which of the following must…
A: A recessionary gap is where the potential output is higher than the actual output in the conomy.
Q: When an economics professor quits his/her job at a university and starts looking for a better job in…
A: When certain workers are unable to find employment in the economy despite actively hunting for it at…
Q: To what does the “GDP gap” refer? Group of answer choices The difference between real GDP in…
A: The "GDP gap" is an economic term that refers to a specific measure used to assess the state of an…
Q: Which of the following are true of an economy operating with a negative GDP gap? Check all that…
A: Gross Domestic Product (GDP at MP): This is the gross market value of all the final commodities…
Q: The Federal government has a requirement that unemployment insurance beneficiaries pay income tax on…
A: Unemployment rate is the percentage of the total labor force that is not working due to different…
Q: Given a full employment level of GDP of 700 Trillion and a current level of 670 Trillion the…
A: Full employment level refers to a situation as described by the classical economists that all the…
Q: Question 22 Which of the following is included in the government purchases category of gross…
A: Answer: The government purchases category of GDP includes the spending of government to purchase…
Q: Suppose real GDP exceeds potential real GDP. If the government decreases its expenditures on goods…
A: GDP is the sum of the value of all the goods and services produced within the geographical borders…
Q: The expansion phase of the business cycle is typically associated with higher and lower
A: The business cycle is a cycle GDP fluctuation around its trend line. It has four phases, i.e.,…
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- 1) If the government increases spending by $400, and the MPS is 0.4, how much will the increase in GDP be? 2) The following table represents some labor force statistics for the island of Rolling Rock: Year Employed Unemployed Labor Workers Unemployment Rate Workers Force (Millions) (Millions) (Millions) 2005 134 14 2006 139 19 2007 153 13.7% 2008 161 15.5% a) Complete the tableGisèle has just graduated from university. She plans to travel around the country for a few months before she starts looking for work. Which statement best characterizes the changes that occur in labour statistics? Question 20 options: The unemployment rate increases, and the labour-force participation rate decreases. The unemployment rate increases, and the labour-force participation rate is unaffected. The unemployment rate is unaffected, and the labour-force participation rate is unaffected. The unemployment rate increases, and the labour-force participation rate increases.The table below shows the data for the country of Magnolia. Complete the national income accounting framework by filling in the missing data. Remember to enter a minus (-) sign to indicate negative values. Expenditures Consumption Gross investment Government spending Net exports Gross domestic product at market prices 100 Less depreciation Less indirect taxes (net of subsidies) Net domestic product at basic prices +/- net foreign factor income Net national product at basic prices 320 350 30 260 50 160 70 1100 220 100 -10 780 320 06 160 130
- 30: In a given economy, families save 10% of their salaries; the current annual taxation rate is 25%; arranged speculations are relied upon to be $ 60 billion; and the import / export imbalance is about $ 2.5 billion. Current government consumptions are $ 270 billion every year. The full limit GNP level is $ 1,060 billion. What is the current shortage? What is the full employment shortfall? Look at the two. Is the current financial plan expansionary or on the other hand contractionary? Clarify.Suppose that the unemployment rate is 5% and the natural rate of unemployment is 4%. Answer the cyclical unemployment in % and answer if the economy is in a boom or a recession. Cyclical unemployment: Boom or Recession?Ceteris paribus, when discouraged workers become more hopeful about their job prospects and begin actively searching for employment, Group of answer choices the official unemployment rate will increase. the official unemployment rate will remain unchanged. the official unemployment rate will decrease. the official unemployment rate could increase or decrease.
- If the nominal wage rises by 6 percent and the price level rises by 7 percent, the real wage will fall by 3 percent. fall by 1 percent. rise by 11 percent. rise by 1 percent.Scenario 1: An increase in the unemployment rate to 7.4% has occurred. Inflation has increased causing a decline in consumer spending. Exports have declined by more than $4 billion. This has caused a decrease in GDP by 3.7%.ggregate demand includes Answer the quantity of goods and services both the government and customers abroad want to buy. the quantity of goods and services neither the government nor customers abroad want to buy. the quantity of goods and service the government wants to buy, but not the quantity of goods and services customers abroad want to buy. the quantity of goods and services customers abroad want to buy, but not the quantity of goods and services the government wants to buy.
- The last decade was free of recessions and from the opening bell in January 2010 to the closing bell in December 2019, the Dow Jones Industrial Average and S&P 500 soared 173.60% and 189.35%, respectively. The Gross Domestic Product increased from $14.992 trillion to $21.433 trillion. Yet during that same period, the labor force participation rate actually declined. So, how could it drop when the economy was booming and labor force participation ages 65 and over. The oldest baby boomers were 64 in 2010 and 73 in 2019. As they aged, a large segment of the population shifted into 65 and older age groups. Because older Americans are less Likely than younger ones to be in the labor force, this demographic shift reduced the overall labor force participation rate. According to this, which of the following statements best explain the labor participation change? Hint: Use the labor Force Participation Formula A. The labor force participation rate grew in every age category because baby…The gross replacement rate is none of these answer options are correct. the proportion of pretax earnings replaced by unemployment insurance. the percentage of each paycheck that is removed for unemployment insurance. the rate that tax receipts are used to cover tax expenditures. a rate of employment in key sectors of the economy.A consequence of unanticipated inflation in an economy is that:Group of answer choices the rate of economic growth reaches a maximum. the risks of investing in a business increase. the level of productive activities in the economy increases. the allocation of resources in the economy becomes efficient.