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A) Why do economists refer to the economy as "fully employed" even when there is measured unemployment as high as 4.5% -5% ? (Hint: begin your answer with a definition of full employment and then compare with the concept of natural rate of unemployment, NAIRU; what is it and why?). How do you relate the most recent unemployment rate (Look for Jan, 2012 data on unemployment rate in www.bls.gov) to your conclusion of this question indicating if the US economy is in a state of full employment? Feb 2012 unemployment data will be announced on March 2nd.
B) Why would you expect the inflation rate to accelerate if the actual unemployment rate declined to a level lower than the "full employment" unemployment rate (NAIRU)? Explain your answer in a few sentences. What state of business cycles (such as recession, trough, recovery or boom) does the current US economy face, and why?
C) Draw an AS/AD diagram illustrating your answer to part (B) That is, draw an AS/AD diagram which shows what happens if strong growth in AD has pushed actual RGDP to a level above potential (full employment) RGDP. Be sure to label all lines and axes in your diagram clearly.
The United Kingdom pound is trading at 1.82 U.S. dollars per United Kingdom pound. There is purchasing power parity at this exchange rate.
Make a case for the effects of each of these changes on the Pastoral Nomad lifestyle and given constraints in semi-arid environments, to what extent has the pastoralist lifestyle become unsustainable?
Country A is on the PPF. It decides to run a budget deficit of 100 billion. Both its potential and actual GDP is 800 billion. What will happen if country A decides to run this deficit? And why? Give a full explanation for this expected result.
It has been estimated by the United States International Trade Commission that Japanese automobile import restrictions during 1980s
Evaluate the likelihood of conflict and cooperation in the future on issues of transnational crime, health, and environmental problems.
The market may function more efficiently if there is only one manufacturer. Recognize markets where monopolies may profitable, and describe why this is the case.
explain how Alternative Trade: Legacies for the Future supports or challenges your conceptualizations of trade and development. Are there themes that some of you agree upon? Do you disagree on others? Describe your conversation.
The most visible and highly paid person in most corporations is the chief executive officer (CEO). CEO compensation is particularly important to firms for three reasons.
Show the relative wage in Home lies in between the relative productivity of labour of two sectors using the information you obtained from parts j and k.
Identify and describe the factors that estimate who actually bears the burden of a tax increase on a specific good, such as gasoline, cigarettes, or some other product.
Chicago and Los Angeles. The total number of passengers flown by these two firms (per quarter), q, is the sum of the passengers flown on American, qA, and those flown on United, qU. Assume no other companies can enter. The flight Chicago-Los Angel..
Develop a detail paper analyzing Intra-Industry International Trade. Your paper should be APA format and structured as follows
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