The tables below describe the employment and price level situation for the country of Gatoria over...

The tables below describe the employment and price level situation for the country of Gatoria over the past four years. Fill out the tables and use them to answer the following questions about how policymakers and politicians in the country might respond such a situation.

Year	# Unemployed (in millions)	# Employed (in millions)	Unemployment Rate
2015	16	210
2016	22	205
2017	20	195
2018	18	200

What has been happening to the unemployment rate since 2015? Use the AS-AD model to illustrate what has happened to the economy since 2015. Assume the economy was at full employment in 2015. From this initial condition, drawa new aggregate demand curve to show how the economy has changed. Describehow the new equilibrium is different from the old one both in terms of price leveland outputlevel.

Expert Solution

Ans 1: Labor force = Employed + Unemployed

Unemployment rate = (Unemployed / Labor force)*100

Year	Unemployed (in millions)	Employed(in millions)	Labor Force (in millions)	Unemployment Rate (in %)
2015	16	210	226	7.08
2016	22	205	227	9.69
2017	20	195	215	9.30
2018	18	200	218	8.26

Ans 2: The unemployment rate has been rising and falling from 2105, as we can see from the table. We can see it rises in 2016 and then falls by a marginal rate in 2017 and then drops further in 2018. But as compared to 2015, the unemployment rate is still higher in 2018 as compared to 2015.

Ans 3: AD/AS curve is given below:

Rahul Sunny answered 8 months ago

How do productivity, price level changes, and employment levels affect the economic stability of a country?/Contemporary...

How do productivity, price level changes, and employment levels affect the economic stability of a country?/Contemporary business 14th edition book.

"Analysis via Pivot Tables" Please respond to the following: Describe a situation where pivot tables could...

"Analysis via Pivot Tables" Please respond to the following: Describe a situation where pivot tables could be used to aid a business decision. Specify the question/problem management needs to resolve and explain the manner in which the pivot table results will provide a solution. You may use one (1) of the homework exercises as a basis for your response, or a company with which you are familiar.

The graph below depicts the full-employment level of output and the actual level of real GDP.

Contractionary Fiscal Policy Exercise 3 The graph below depicts the full-employment level of output and the actual level of real GDP. a. At which time period is an economic expansion occurring? Year 1 Year 9 Year 3 b. What is the best policy action by the federal government during an economic expansion? Expansionary fiscal policy Full-employment fiscal policy Contractionary fiscal policy c. True or false: In order to smooth out the business cycle, fiscal policy should adjust government spending and taxes to reflect the exact difference between actual GDP and...

Consider the example of trade between Taiwan and Italy described in the tables below. Country #...

Consider the example of trade between Taiwan and Italy described in the tables below. Country # of workers needed to produce 1,000 units- Scooters # of workers needed to produce 1,000 units- Laptops Taiwan 10 workers 4 worker Italy 20 workers 10 workers Total Production Before Trade Country Current Scooters Production Current Laptops Production Taiwan 10,000 25,000 Italy 5,000 10,000 Total 15,000 35,000 Suppose that each country currently has 200 workers and each decides to transfer some amount of labor...

Describe a situation where pivot tables could be used to aid a business decision. Specify the...

Describe a situation where pivot tables could be used to aid a business decision. Specify the question / problem management needs to resolve, and explain the manner in which the pivot table results will provide a solution. You may use one (1) of the homework exercises as a basis for your response, or a company with which you are familiar.

Based on the information below please: Calculate TR for each price level At every price level...

Based on the information below please: Calculate TR for each price level At every price level compare TR thus you will calculate the change in TR as the price drops. In which price range is your demand elastic In which price range is your demand unit elastic In which price range is your demand inelastic Explain how you can assess that in a particular price range the demand is elastic, unit elastic or inelastic. Price Quantity TR 10 1 9...

Discuss why pundits suggest that the unemployment rate fails to accurately describe the current employment situation.

Tables below shows the standard deviations over the last five years and the correlations between the...

Tables below shows the standard deviations over the last five years and the correlations between the returns of the stocks and the market. Stdev Stock A Stock B Market Stock A 23.00% Stock A 1.0 0.5 0.3 Stock B 13.00% Stock B 0.5 1.0 0.8 Market 18.00% Market 0.3 0.8 1.0 Calculate the CAPM beta for each stock. b. Which stock had the greater total risk? Explain. c. Which stock had the greater market risk? Explain. d. Which stock had...

1. The price level depends upon? a. interest rate and employment. b. total spending and total...

1. The price level depends upon? a. interest rate and employment. b. total spending and total production. c. the level of total spending and labor productivity. d. unemployment rate and total production e. total interest and market rate

Starting from a full employment equilibrium, how do the real GDP and price level change in...

Starting from a full employment equilibrium, how do the real GDP and price level change in the short run and in the long run in response to an increase in AD ?

Question