Question

In: Economics

As of July, 2020 the unemployment rate fell to 11.1%. The U.S. unemployment rate is at...

As of July, 2020 the unemployment rate fell to 11.1%. The U.S. unemployment rate is at its lowest level in months and the economy added a record number of jobs in June. How do you interpret this rate? identify the national unemployment rate. How do you interpret this rate? Identify at least two changes to the Unemployment Insurance Policy that were instituted in March 2020 in response to the COVID-19 crisis. What might be some of the short-term and long-term consequences of this change.

Solutions

Expert Solution

Because of current pandemic many global economies are facing twin shocks of Demand Shock and Supply Shock. Unemployment has increased sharply and globally almost billions of people are impacted. In many countries the unemployment has increased many fold.

- Below chart explains that the unemployment rate in US due to corona pandemic and crisis shoot up to over 15% appx in the month of April.

- However as the economy has opened up since May , the unemployment rate has started coming down.

- Unemployment rate of 11%in June is very good as compared to high of 15% in April

- Because of COVID-19, Congress as of late established the Families First Coronavirus Response Act ("FFCRA") and Coronavirus, Aid, Relief, and Economic Security Act (CARES) as a defensive measure against this emergency, including fundamental help to the two businesses and workers.

- Short term impact of this was that it gave benefits to unemployed so that they can have food and shelter and basic necessities. However its long term impact will be devastating if it continues because the people will have less incentive to work and also the benefits will increase the deficit for the government.  

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

As of July, 2020 the unemployment rate fell to 11.1%. The U.S. unemployment rate is at...
As of July, 2020 the unemployment rate fell to 11.1%. The U.S. unemployment rate is at its lowest level in months and the economy added a record number of jobs in June. How do you interpret this rate? Identify at least two changes to the Unemployment Insurance Policy that were instituted in March 2020 in response to the COVID-19 crisis. What might be some of the short-term and long-term consequences of this change.
In April 2019, the U.S. unemployment rate fell to 3.6 percent, its lowest level in almost...
In April 2019, the U.S. unemployment rate fell to 3.6 percent, its lowest level in almost 50 years. In Texas, the unemployment rate was 3.4 percent in June 2019, its lowest level since individual state data began being kept in 1976. Unemployment rates this low are often viewed as being very good for the economy, so explain how low unemployment rates benefit the economy in terms of the following: productivity and GDP growth wages and wage growth consumer confidence labor...
what is the conection and impact U.S GDP with U.S unemployment rate
what is the conection and impact U.S GDP with U.S unemployment rate
Suppose the unemployment rate in May is 5.5%, in June is 5.6% and in July it...
Suppose the unemployment rate in May is 5.5%, in June is 5.6% and in July it is 5.7%. Which of the following statements is true? The change in the unemployment rate of May to June is statistically significant. Even though neither the change in the unemployment rate from May to June nor the change from June to July is statistically significant, the change in the unemployment rate from May to July also is statistically significant. Because neither the change in...
Explain how we measure unemployment in the U.S. Define the different components to the unemployment rate...
Explain how we measure unemployment in the U.S. Define the different components to the unemployment rate (cyclical, structural, and frictional). Critically analyze the tradeoffs economies face when they attempt to decrease the unemployment rate below the natural rate. Use graphs and or models in your analysis.
In January 2020, the unemployment rate in California was currently 3.9%. You guess that the rate...
In January 2020, the unemployment rate in California was currently 3.9%. You guess that the rate specifically in Los Angeles County is higher, since you think that the job market in Los Angeles consists of younger people. You randomly sample 850 employable people in Los Angeles and find that 100 are unemployed. At the 95 percent confidence level, does the data you collected support your claim?
In February 2020 the unemployment rate was 3.5% and economists agreed that the economy was at...
In February 2020 the unemployment rate was 3.5% and economists agreed that the economy was at full employment with real gross domestic product (GDP) of $19 trillions. Bureau of Labor Statistics reported that by the end of April 2020, unemployment rate rose to 14.7% as the result of jobs loses due to the Coronavirus pandemic (Hint: use Okun’s law for some parts of this question). a. Calculate by how much (how many dollars) do you expect the real GDP to...
For a number of reasons, economists believe that the natural rate of unemployment in the U.S....
For a number of reasons, economists believe that the natural rate of unemployment in the U.S. economy declined from the 1980s to the 1990s and early 2000s. Provide at least two different reasons for this phenomenon and discuss each.
Suppose in July of 2008, the true proportion of U.S. adults that thought unemployment would increase...
Suppose in July of 2008, the true proportion of U.S. adults that thought unemployment would increase was 47%. In November of 2008, the same question was asked to a simple random sample of 1000 U.S. adults and 432 of them thought unemployment would increase. Can we conclude that the true proportion of U.S. adults that thought unemployment would increase in November is less than the proportion in July? Use a 5% significance to test. Round to the fourth H0: Select...
2. For the month of May 2020, the unemployment rate for the national total was 21.4%,...
2. For the month of May 2020, the unemployment rate for the national total was 21.4%, according to information from DANE recently. Consider that a sample is randomly selected from 300 people in a certain city. b. What is the mean or expected value of the sample distribution of the proportions? c. What is the standard error of the sampling distribution of the proportions? d. Write the syntax for the sample distribution of the proportions e. Find the probability that...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT