Use a properly labeled graph to illustrate the relationships between full-employment (or potentialor natural rate of output) output Y and the boom-bust of business cycles. Explain how actualunemployment u, frictional unemployment UF, structural unemployment us, cyclicalunemployment uc, natural unemployment un, actual output Y, and Y are related to each otherthroughout a business cycle. Show your step-by-step derivation with explanation related to thegraph or a zero will be assigned.

Given - The chart below shows the relationship between output Y at full employment (or the potential…

Use a properly labeled graph to illustrate the relationships between full-employment (or potential or natural rate of output) output YN and the boom-bust of business cycles. Explain how actual unemployment u, frictional unemployment UF, structural unemployment uç, cyclical unemployment uc, natural unemployment un, actual output Y, and Y are related to each other throughout a business cycle. Show your step-by-step derivation with explanation related to the graph or a zero will be assigned.

Use a properly labeled graph to illustrate the relationships between full-employment (or potential or natural rate of output) output YN and the boom-bust of business cycles. Explain how actual unemployment u, frictional unemployment UF, structural unemployment uç, cyclical unemployment uc, natural unemployment un, actual output Y, and Y are related to each other throughout a business cycle. Show your step-by-step derivation with explanation related to the graph or a zero will be assigned.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Month/Yr Sep/2020 Cyclical Rate of Unemployment (percent) 3.5 Suppose it is claimed that actual real GDP deviates from potential real GDP by 2% for every percentage point of cyclical unemployment. In other words, assume that actual real GDP falls below (or rises above) potential real GDP by 2% when the rate of unemployment rises above (or falls below) the natural rate of unemployment by 1%. Given the cyclical unemployment rate recorded above, this translates into actual real GDP deviating from potential real GDP by $ billion. (Enter your response rounded to one decimal place and use a minus sign if necessary. If actual GDP is below potential GDP, enter your answer as a negative value.)
Scenario 1. Assume that frictional unemployment is 25; structural unemployment is 50; cyclical unemployment is 150; discouraged workers = 75; employed workers = 750; underemployed workers = 200. Use this information to answer the following 5 questions.Refer to Scenario 1. Is the economy at full employment? Question 15 options: a) Yes, because the unemployment rate is below 10% b) No, because the unemployment rate exceeds the natural rate of unemployment c) No, because cyclical unemployment exists in the economy d) Answers B and C are both correct
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Assume the unemployment rate is 8.0%. Also, assume that the natural rate of unemployment is 5%. If frictional unemployment is twice that of structural unemployment, then how much is frictional unemployment? Expressed as a whole number: no percentage sign.
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What is the diference between the natural rate of unemployment andcyclical unemployment? How are these related to structural and frictionalunemployment?
Unemployment insurance increases the amount of .................. unemployment by ................ and Labor unions increases the amount of ................ unemployment by ................... A) frictional / making workers more desperate in their search for new jobs / structural / increasing the real wages B) frictional / softening the economic hardship of unemployment / structural /making employers more reluctant to lay off workers. C) frictional / encouraging workers to accept the first job offer that they receive / structural / adopting efficiency wages. D) frictional / softening the economic hardship of unemployment / structural / increasing the real wages. E) structural / encouraging workers to accept the first job offer that they receive / frictional / adopting efficiency wages
Only solve E and F