The structural unemployment rate is 1.3% and the frictional unemployment is 2.9%, and the economy's current unemployment rate is 4.2%. The economy is in: Group of answer choices full employment having reached the potential real GDP. a recessionary gap producing less than the potential real GDP. an inflationary gap having more unemployment than the natural unemployment. an inflationary gap having lower unemployment than the natural unemployment.

Q: 2019 2020 2021 Real GDP($) Unemployment rate 613 585 575 6.75% 6.8% 6.95% Calculate the size of the…

A: GDP gap has following formula GDP gap = Actual GDP * (Unemployment rate -natural rate of…

Q: When the actual unemployment rate is likely to .9 be less than the natural rate of unemployment, we…

A: When the actual unemployment rate is likely to 0.0 be less than the natural rate of unemployment, we…

Q: The three people described in the following table are categorized as unemployed by the Bureau of…

A: Structural unemployment refers to unemployment that arises from a mismatch between the skills and…

Q: If the unemployment rate is 6.2% and the number of people employed is 400,000, total number of…

A: Given that, the unemployment rate is 6.2%  number of people employed is 400,000 we have to find the…

Q: Explain and show graphically how a positive supply shock, followed by a more restrictive monetary…

A: Answer-

Q: The natural rate of unemployment is decomposed into unemployment. cyclical and frictional structural…

A: The natural rate of unemployment is a sum of structural and frictional unemployment.

Q: Complete the blanks. When all unemployment is ________________ and ______________, the unemployment…

A: Unemployment means that people are not working but they are searching for a job. It means the people…

Q: Solve the attachment.

A: Inflation occurs when the average price of final products increases over a period of time. Inflation…

Q: When a radiologist quits her job at a hospital and starts looking for a better job in another…

A: When a person is unemployed, it means that they are capable of working, actively looking for job,…

Q: Assume that the economy is in a full employment equilibrium. There is an increase in consumer…

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: The three people described in the following table are categorized as unemployed by the Bureau of…

A: When there is a mismatch between the skills that the jobless people possesses and the jobs that are…

Q: What two types of federal government policy can mitigate cyclical unemployment?   changes in…

A: Answer: Correct option: D (changes in government expenditures and taxes) Explanation: Cyclical…

Q: Please select the correct answer, there is only one possible answer to each question  If the…

A: When the economy is not producing at the potential level, then recessionary gap or inflationary gap…

Q: The U-1 rate for April 2020 was 1.1%.The U-3 rate for April 2020 was 14 .7%. Based on the answers to…

A: The unemployment rates reported by the Bureau of Labor Statistics (BLS) in the United States come in…

Q: In which year did the economy above most likely have an actual unemployment rate equal to the sum of…

A: The economies around the globe are involved in various economic, and financial transactions, and…

Q: Structural unemployment issue will remain there under a. Keynesian zone of aggregate supply b.…

A: Structural unemployment will remain under keynesian aggregate supply because firms may not hire more…

Q: When most workers are classified as not being in the labor force, when in reality they are actively…

A: Labour force is the sum of employed and unemployed. Unemployed people are people who are actively…

Q: The data in the table below are for the economy of Merton, which has a natural rate of unemployment…

A: The GDP implies the value of all the commodities and services provided in the economy by the…

Q: When there is an inflationary gap, current real GDP is __________ potential real GDP, and the…

A: The market value of all final goods and services produced in the economic territory of country over…

Q: The level of natural unemployment is 5%, the actual one is 10%. The Okun’s coefficient is 2%;…

A: Okun's law states the statistical relationship between the output gap and the cyclical unemployment…

Q: In an economy, inflation was expected to be 3% and was in fact 5%. The labor force is N=13. The…

A: Expected inflation is 3% Actual inflation is 5% Labor force=13 Given graph: Natural employment=11.1…

Q: Suppose that in an economy the structural unemployment rate is 2.1 percent, the frictional…

A: Cyclical unemployment is the type of unemployment where people loose their job as per economy trend…

Q: The data in the table below are for the economy of Merton, which has a natural rate of unemployment…

A: The gross domestic product (GDP) refers to the total output of an economy produced in a given fiscal…

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: If output equals 50,000 and full employment real GDP equals 45,000, then this economy has a(n)…

A: Gross domestic product refers to the final value of goods and services produced in a territory of a…

Q: The aggregate demand curve shows  at each level of unemployment what is the total demand for goods…

A: The aggregate demand (AD) curve is a graphical representation of the relationship between the…

Q: Consider an economy with 500 people in the labor force. At the beginning of every month, 4 people…

A: Unemployment is the issue caused in any economy due to certain part of productive labor force not…

Q: Exhibit Economic Adjustments if the economy is at point a, Group of answer choices employment is…

A: The topic described in the question is related to the money market in economics, which is the…

Q: increases in a positive GDP gap are associated with increase in the unemployment rate. True Or False…

A: A positive GDP gap, also known as an inflationary gap, occurs when actual aggregate output exceeds…

Q: Real Wage 100 will equal 90 80 70 60 50 40 30 20 10 0 0 24 10,000 Demand for Labor Function The…

A: Given:  Population = 100,000  Labor participation rate = 30%

Q: When the actual unemployment rate is likely to .9 be less than the natural rate of unemployment, we…

A: Natural rate of unemployment:- The natural rate of unemployment can be defined as the minimum rate…

Q: Instructions: Enter your answer as an absolute number. According to Okun's law, if a country's…

A: The output gap is the difference between potential output and actual output. Potential output is…

Q: O frictionally unemployed.

A: If Samantha quits her job voluntarily and actively searches for other work, then she is considered…

Q: Consider Thailand's economy, which is characterized by a total population of 21,800,000. 467,000…

A: The economies around the globe are majorly involved in the economic, as well as financial…

Q: If discouraged workers are included in the determination of the unemployment rate, what effect will…

A: Discouraged workers are those workers who are not actively seeking employment but would like to work…

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: Rising per-unit production costs are most: Multiple Choice

A: A rise in the per-unit cost of production suggests that it will affect the supply adversely. The…

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: Suppose a technological breakthrough leads domestic manufacturers to decrease the number of workers…

A: Unemployment exist when a person who is actively seeking job, willing and able to work at the given…

Q: iscuss two methods that can be used to determine the full-employment rate of unemployment and what…

A: The full Employment rate of unemployment means neutral unemployment, which is calculated as Total…

Q: Refer to the information provided in Table 22.1 below to answer the question(s) that follow. Table…

A: Unemployment rate = No. of unemployed people / No. of people in labour force As per given details:-…