We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Ass 5.8 - Essay Example

Comments (0)
Ass 5.8 Basic Macroeconomic Problems Name: Institution: Course: Tutor: Date: Ass 5.8 Basic Macroeconomic Problems 1. Unemployment rate refers to a proportion of unemployed people divided by the total labor force (Hall & Lieberman, 2010). Whereby, labor force include all those people who have not attained retirement age and are actively working or searching for a job (Hall & Lieberman, 2010)…
Download full paper
Ass 5.8
Read TextPreview

Extract of sample
Ass 5.8

Download file to see previous pages... In order to determine the official unemployment rate it is important to determine the total labor force. Total labor force = Unemployed work force + employed workers = 8.4 + 108.5 =116.9 Therefore, Unemployment rate= Number of unemployed workforce ?100 = 8.4 ? 100 = 7.2% Total Labor force 116.9 The official unemployment in the US in 1991 was = 7.2% 2. If bureau of statistics considered 1.2 million people as unemployed, the official unemployment rate will be as follows; Official Unemployment rate= Number of unemployed workforce ?100 Total Labor force Total labor force = 108.5 + 1.2= 109.7 Official Unemployment rate= (1.2?109.7)100 =1.1% There was a discrepancy of 6.1% obtained by finding the difference between the two rates of unemployment as follows 7.2%-1.1% =6.1%. The discrepancy may be attributed to an increase in recession and inflation rate leading to a decrease in unemployment rate by 1.6% in the second answer. 3. The Concept of natural rate of unemployment Natural rate of unemployment refers to the rate of unemployment that occurs in a healthy economy when the labor market at equilibrium (Taylor, 2007). At this at this point full employment corresponds with the rate of unemployment. The concept can be presented diagrammatically as shown below. Real Wage ASL N= labor force ADL Natural rate of Unemployment We Q1 Q2 Source: Author Natural rate of unemployment include Frictional and structural unemployment (Mankiw, 2011). Frictional rate of unemployment occurs when people leave their current job and went to look for new better and satisfying jobs (Mankiw, 2011). During this period, people may remain unemployed and therefore, an economy may experience frictional rate of unemployment (Mankiw, 2011). On the other hand, Structural rate of unemployment occurs when new technological changes leads to unemployment because people do not have the required skills and knowledge to do the job and therefore, people need to be retrained in to make their skills correspond to a job need (Woirol, 1996). Distinguishing between “good” inflation and “bad” inflation and why some economists see some inflation superior than others. Economist asserts that a good inflation refers to the one that creates caution to an economy of an impending deflation so that an economy can put in place necessary measures to curb impending deflation (Mceachern, 2012). Additionally, a good inflation can helps in real wage adjustment in case of disequilibrium. On the other hand, economist asserts that a bad inflation is the one that has a depressing impact to an economy making the cost of living to be extremely high and unbearable(Mceachern, 2012). A bad inflation tends to make an economy engage itself in borrowing leading to escalating debts. Additionally, wages and income tend to remain low as the cost of living continues to rise (Mceachern, 2012). This situation could lead to strikes and boycotts as workers pressures employers to increase their salaries and wages in order to cope with high cost of living (Mceachern, 2012).Some economist hold that hyper inflation as a superior as compared with double digit and moderate inflation. This is because hyper inflation makes the economy to become totally depressed as money in circulation losses value making the cost of living unbearable. Lesson 9: Managing the Economy: Fiscal Policy and Its Effects 1 (a).Effects of $20billion tax cut on ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
Ass 6: psy5014_ interviews
sample was recruited in the hopes of establishing different perspectives of problem-solving from a unique gender viewpoint and various age differences. The results of the interview are described and highlighted in this paper. The main problem identified by this participant was
2 Pages(500 words)Essay
Change Management Ass 2
The complexity is even more in today’s highly globalized environment. Free trade and globalization has resulted in a large number of companies expanding
8 Pages(2000 words)Essay
Weekly ass. #1
flict usually arises (thus, the term ‘storming’); 3) norming, which is characterized by the overcoming of tension and focusing back to the task at hand, as well as the smooth flow of information; and 4) performing, which is the climax of all previous phases and implicates a
1 Pages(250 words)Essay
Weekly ass. #3
With advent of internet and World Wide Web, distance has become completely irrelevant and has changed the way we do business. One of the primary reasons behind the virtual business world today is the low-cost, high-capacity and high-speed communication
1 Pages(250 words)Essay
Weekly ass. #4
1). In “Guidelines for Inclusive Language in English”, biased language is explained as “language that is either sexist or suggestive of other conscious or subconscious prejudices that are not central to the meaning of the
1 Pages(250 words)Essay
Weekly ass. #5
While a long paragraph may be normal for more advanced readers, average readers would be comfortable with a normally paragraphed writing. While academic writings to highly educated supervisors can have
1 Pages(250 words)Essay
Weekly ass. #7
One reason why employees should avoid sending personal emails from their work computers is that it is unethical. However, the availability of free internet and free time at work is a great temptation to many workers. According to Schulman, electronic communication
1 Pages(250 words)Essay
Weekly ass. #9
This is in respect to our earlier discussions with you to review your prices of supply downwards; the price that you quoted is well above our range. With the harsh economic times, I am sorry to say that we are not in a position
1 Pages(250 words)Essay
Weekly ass. #11
In addition to this, confusion may be minimal as information is represented in an easier way. Even if the information to be conveyed is presented to children, there is no risk of confusion as charts makes the
1 Pages(250 words)Essay
Ass 3
Coca-Cola runs its adverts during Super Bowl matches. This year’s commercials are of ‘injecting happiness into the Internet,’ the drinks commenced teasing its Super Bowl spot on January 26.
1 Pages(250 words)Essay
Let us find you another Essay on topic Ass 5.8 for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us