SRAS AD Real GDP Price level LRAS

Q: A) What was the unemployment rate? Show your work.   B) What was the labor force participation…

A: Unemployment rate is the percentage of the labor force that is jobless and actively seeking…

Q: Why might a favorable change to the economy such as technological change or a decrease in the price…

A: Frictional unemployment alludes to the unemployment which exists in any economy because individuals…

Q: Complete the following table showing which curve shifts, which way it shifts, and the impact on the…

A: AD- Aggregate demand represents the total demand for goods and services within an economy at a given…

Q: Suppose that inflation increases from Year #1 to Year#2 without growth. Which of the following…

A: The question is asking us to identify which graph correctly represents a situation where inflation…

Q: For a number of reasons, economists believe that the natural rate of unemployment in the U.S.…

A: The Natural rate of unemployment refers to the unemployment rate that exists in the healthy and…

Q: n 2019 there were 10,000 people employed 1000 people were unemployed and 1500 people not in the…

A: For 2019:Labor force=Employed+UmemployedLabor force=10,000+1,000Labor force=11,000

Q: he graph shows an aggregate demand curve. raw a curve that shows the effect on aggregate demand fan…

A: Aggregate demand is the sum of consumption, investment, government spending and net export. AD = C +…

Q: 27. Using the macroeconomic data as presented in #26 above. The natural rate of unemployment in this…

A: Labor force = Employed + unemployed  = 7500 + 720 + 100 + 150 = 8470 Discouraged workers are not…

Q: Which of the following correctly shows the steps needed to calculate the inflation rate?

A: The consumer price index is used in measuring the price level. The consumer price index converts the…

Q: Economists forecast future economic conditions by studying variables that tend to fluctuate in…

A: Economic conditions refer to the state of an economy at a particular point in time. This includes…

Q: In order to improve the living standards of the people in Philippines after the devastating typhoon…

A: In the Philippines, government Increases the wage rate to protect the interest of the workers as the…

Q: Suppose the world price of wood pulp falls substantially. The demand for labour among wood…

A: Equilibrium refers to a fluctuating situation in which market adjustment occurs. A steady pricing is…

Q: ssume the following for the town of Boone: The town has a total population of 60,000 people, of…

A: Labor force= employed+ unemployed

Q: Consider a tiny hypothetical economy composed entirely of the following people: Jake, Latasha, Nick,…

A: The Bureau of Labor Statistics (BLS) sets the criteria for describing who is employed and who is…

Q: Is it possible for there to be inflation present in the economy and still witness a decline in a…

A:

Q: Streaming services Iced coffees Textbooks Notebooks Energy drinks Total cost Price index Suppose…

A: Price index is a measure the change in cost of buying a goods basket relative to base year. Price…

Laffer Curve Analysis

In terms of economics, the Laffer curve was popular among those economists who were or who belonged to the supply side of the economic peripheral.  This concept was popularized by the famous supply-side economist known as Arthur Laffer. This curve illustrated the relationship between the tax rates and government revenue. It is already known that the tax which the public or individuals residing in an economy bear is the revenue or income of the government with the help of which the government does all the necessary works in the society, which is beneficial for the economy.