MACROECONOMICS IN MODULES
5th Edition
ISBN: 9781319245368
Author: KRUGMAN
Publisher: MAC HIGHER
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Question
Chapter 8, Problem 1QFT
To determine
To explain: The way frictional
Concept Introduction:
Frictional Unemployment: This kind of unemployment exists when the employed people leave their job in order to find a better one.This kind of unemployment is voluntary in nature.
Expert Solution & Answer
Answer to Problem 1QFT
- Many of the already employed workers prefer to work as a freelancer with the advancement of technology.
- The transformation of the market is possible by the matching online jobswith the service provided.
Explanation of Solution
- Few companies prefer to hire temporary worker instead of permanent ones, during the peak times. Therefore, the role of temporary staff is becoming important with time.
- Many people stay unemployed every year, so these people can get temporary employment. Therefore, if this expanding of market is continued, then there will be riser in pool of workers.
- When people use services provided by company TR, they will leave their old jobs to find a better replacement which takes time. This will lead to an increase in frictional unemployment.
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Tasks
Exercise 1
Assess the following functions:
1. f(x)= x2+6x+2
2.f '(x)=10x-2x2+5
a. Find the stationary points. (5 marks)
b. Determine whether the stationary point is a maximum or minimum. (5 marks)
c. Draw the corresponding curves (5 marks)
Problem 2:
The sales data over the last 10 years for the Acme Hardware Store are as follows:
2003
$230,000
2008
$526,000
2004
276,000
2009
605,000
2005
328,000
2010
690,000
2006
388,000
2011
779,000
2007
453,000
2012
873,000
1. Calculate the compound growth rate for the period of 2003 to 2012.
2. Based on your answer to part a, forecast sales for both 2013 and 2014.
3. Now calculate the compound growth rate for the period of 2007 to 2012.
1. Based on your answer to part e, forecast sales for both 2013 and 2014.
5. What is the major reason for the differences in your answers to parts b and d? If you were to
make your own projections, what would you forecast? (Drawing a graph is very helpful.)
Chapter 8 Solutions
MACROECONOMICS IN MODULES
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