### How does the unemployment rate in may compare

Assignment Help Econometrics
##### Reference no: EM13199575

"A spike in the unemployment rate-the biggest in more than 2 decades-raised new concerns Friday that a weak labor outlook, high oil prices and continuing woes in the housing & credit markets are leading the US economyin to a painful recession. The gov. on Friday said that the unemployment rate soared to 5.5% in May from 5% in April- much higher than previously forcast. the surge marked the biggest one month jump in unemployment since Feb 1986, and the 5.5% rate is the highest level seen since Oct 2004. Unemployment is now a full percentage point higher than a year ago. CNN 6/6/08
A. How does the unemployment rate in May compare to the rate during hte past few recessions?
B. Why might the unemployment rate tend to actually underestimate the unemployment problem, especially during a recession?
C. How does the unemployment rate in May compare to the estimated natural unemployment rate? What does this imply about the relationship between the GDP and the potential GDP at this time?

### Previous Q& A

#### Define entrants and reentrants into the labor force

In March 2007, the US unemployment rate was 4.4 percent. In August 2008 the unemployment rate was 6.1 percent. Use this information to predict what happened between March 2007 and August 2008 to the numbers of A. Job losers to and job leavers

#### How much will jane have in her retirement account

How much will Jane have in her retirement account immediately after she makes her last contribution in Year 40, assuming a return on her investments of 9%?

#### What is the level of production and price

A firm faces the following average revenue (demand) curve: P = 120 - 0.02Q where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by C = 60Q + 25,000.

#### Analyse the banks liquidity risk situation

Determine and analyse the banks liquidity risk situation, between 2010 and 2011, by using traditional liquidity ratio analysis, and evaluate its potential change with respect to the new Basel 3 approach of liquidity

#### What is the meaning of a four-firm concentration ratio

Interpret what a score of 90% would mean for the four-firm concentration ratio. What are the shortcomings of concentration ratios as measures of monopoly or oligopoly power. What is the meaning of a four-firm concentration ratio.

#### Methodologies in terms of market risk evaluation

Value-at-Risk (VaR) is defined as the probability of suffering a loss in excess of a given threshold or confidence interval. Can you analyse and appreciate the existing VaR methodologies in terms of market risk evaluation?

#### How to maintain software at the clients site

A recent internal study revealed that this client's demand for your software is Q^d = 100 - 0.1P and that it would cost you \$500 per unit to install and maintain software at this client's site. the profit that results from charging this client a si..

#### How much should the firm charge for this package

A monopoly is considering selling several units of a homogenous product as a single package. A typical consumer's demand for the product is Q^d = 50 - 0.25P, and the marginal cost of production is \$120. Determine the optimal number of units to put ..

#### Was slavery necessary for the growth of the cotton industry

What was the relationship between cotton and the slave economy in the antebellum American South. was cotton expansion necessary for the continuation of slavery. Was slavery necessary for the growth of the cotton industry.

#### Do you think fed chairman was a good appointment

The economy begins in long-run equilibrium. Then one day, the president appoints a new chairman of the Federal Reserve. This new chairman is well-known for his view that inflation is not a major problem for an economy.

### Similar Q& A

#### What are general equilibrium values of real interest rate

An economy has full-employment output of Y%u0305 = 1850. Desired consumption and desired investment are: \(C^{d}= 500 + .5(Y-T)-100r\) \(I^{d}= 400 - 100r\) Government purchases and taxes are G = T = 200. Money demand is: \(M^{d}=P(.5Y-200i)\) The n..

#### How much will be in fund immediately after the 13th deposit

Suppose you make 30 annual investments in a fund that pays 5 percent compounded annually. If your first deposit is \$7500 and each successive deposit is 5 percent greater than the preceeding deposit, how much will be in the fund immediately after t..

#### Calculate the expected return from each technique

Sua suppose a farmer has some money of his own to invest in a better way to cultivate his land. there are two techniques, both of which require an initial start-up capital of \$200. The first technique is risk free and generates a return of 20..

#### What total surplus will result from a transaction

Consider a seller who values a car at \$9,500 and a buyer who values the same care at \$10,000. What total surplus will result from a transaction between the two when the seller is faced with the follow sales tax rates: 0%, 2%, 4%, 6%, and 8%

#### Compute the substitution effect on her demand for x

Cindy consumes goods x and y. Her demand for x is given by x(px, m) = 0.05m -5.15px. Now her income is \$419, the price of x is \$3, and the price of y is \$1. Now , assume the price of x rises to \$4, the income is still \$419.

#### Determine cross price elasticity with good

Using the following equation for the demand for a good or service, calculate the price elasticity of demand,cross price elasticity with good x, and income elasticityt. Q= 8 - 2p + 0.10I + Px, Where Q is quantity demanded, p is the price, I is inco..

#### What is economics system

What is economics system? What are the types of economics system? Briefly explain each type of economics system by giving examples of nations that are close to each type

#### What would a 1,500,000-pound-per-year plant cost now

what would a 1,500,000-pound-per-year plant cost now Suppose that the construction cost index has increased an average rate of 12 percent per year for the past eight years and that the cost-capacity factor (x) to reflect the economy of scale is 0...

#### Explain the keynesian theory

Suppose the economy is in a short-run equilibrium where Y

#### Compare to gasoline-fueled car averaging 30 miles per gallon

A group of enterprising engineering students has developed a process for extracting combustible methane gas from cow manure (don't worry the exhaust is odorless). With a specially adapted internal combustion engine, the students claim that an auto..

#### Find the amount that should be invested to total in 5years

A company will need \$65,000 in 5 years for a new addition. To meet this goal, the deposits money in an account today that pays 7% annual interest compounded quarterly. Find the amount that should be invested to total &65,000 in 5 years.

#### Compute the depletion allowances for years 4

American Pulp Corp. (APC) has entered into a contract to harvest timber for \$450,000. The total estimated available harvest is 150 million board-feet. What is the depletion allowance for years 1 to 3 if 42, 45, and 35 million board-feet are harvest..