... | Points Received: | 2 of 2 | | Comments: | | | | Question 2. | Question : | The unemployment rate is the number of | | | Student Answer: | | jobless individuals looking for work divided by those employed and unemployed but actively looking. | | | | jobless people looking for work divided by the population. | | | | people looking for work divided by the population. | | | | jobless individuals divided by the total labor force. | | | | Points Received: | 2 of 2 | | Comments: | | | | Question 3. | Question : | Which of the following statements about the behavior of the unemployment rate in the United States is true? | | | Student Answer: | | The unemployment rate in the most recent recession involved a peak rate of unemployment lower than the peak rate of the recession before it. | | | | Between 1960 and 2004, the unemployment rate has fluctuated between 3.4% and 6%. | | | | Generally, when the actual level of output is above the natural level of output, the actual level of unemployment tends to be above the natural level of unemployment. | | | | Generally, when the natural level of output is above the actual level of output, the actual level of unemployment tends to be below the natural level of unemployment. | | | | Points Received: | 0 of 2 | | Comments: | | | | Question 4. | Question : | The inflation rate is the | | | Student Answer: | | measure used to calculate the cost of borrowing money...
Words: 942 - Pages: 4
...the negative relation between unemployment and inflation that was first observed in the United Kingdom. True: According to the reading on page 161, it says the same thing. b. The original Phillips curve relation has proven to be very stable across countries and over time. False: According to the reading on page 161, it states that the relation broke down and in most countries there was both high inflation and high unemployment. c. The aggregate supply relation is consistent with the Phillips curve as observed before the 1970s, but not since. False: According to the reading on page 171, it states that the relation has held quite well, but there are signs of warnings. d. Policy makers can exploit the inflation-unemployment trade-off only temporarily. Uncertain: I am not quite sure if this is true because I could not find in the reading about this being false or true. e. In the late 1960s, the economists Milton Friedman and Edmund Phelps said that policy makers could achieve as low a rate of unemployment as they wanted. Uncertain: According to the reading on page 170, Friedman and Phelps argued that the appearance of a trade-off between inflation and unemployment was an illusion, which it did disappear in the next few years after the 1960s. f. The expectations-augmented Phillips curve is consistent with workers and firms adapting their expectations after the macroeconomic experience of the 1960s. g. The natural rate of unemployment is constant over time within...
Words: 974 - Pages: 4
...large spatial disparities in unemployment within national economies is a central issue in regional economics. Explanations that exist within the literature for why regional unemployment disparities have been so much more persistent over time in the EU than in the US can be broadly separated to the hysteresis and equilibrium arguments. Before illustrating the analysis and strength of these arguments it is important to ascertain the scale of persistent unemployment disparities across EU regions and U.S states, and why this may be a cause for concern. Regional disparities in unemployment rates are dramatically significant in Europe. In 2001, the average unemployment rate in the EU was 7.8%, but it ranged from 1.7% in Berkshire (UK) to 24.9% in Calabria (Italy).[1] These disparities are present even within single countries, where the range of unemployment rates is much higher than in the US. Disparities in European regional unemployment rates are also extremely persistent. In the US the correlation between regional unemployment rates between 1997-2004 is only 0.3, indicating that over two-thirds of any regional unemployment problem is solved over that period. In Europe, however, the correlation averages 0.83, suggesting that very little adjustment takes place. (Figure 1 in Appendix)[2] This is not a recent phenomena but persistence appears to have been the main feature of behaviour of regional unemployment disparities in European regions...
Words: 2077 - Pages: 9
...Econ 202 Unemployment in the US The unemployment rate in the United States has gone through changes in the past few years. It can fluctuate from high to low depending on our economy’s stability at the time. With the economy in a recent recession the level of unemployment rose. This affected millions of US citizens as well the US GDP levels. When citizens are out of work fewer products are being purchased and retail starts to decline. The US economy is slowly coming out of the financial crisis and recession within the last recent years. It wasn’t until the past year of 2011 did our economy see a positive turn around and unemployment levels began to decline. The Unites States economy has been showing increasingly positive signs throughout the year 2011. The unemployment rate fell recently in 2012 and is continuing to show good signs for a better economy. As of January 2012 the unemployment rate has fell to 8.3% in the Unites States. This is the lowest level the economy has seen since February 2009. Since August 2011 the unemployment rate has decreased by .8%. The widespread unemployment experienced in the last recent years is not the worst the US economy has ever experienced. The unemployment rate in the US averages 5.70 % from 1948 to 2010. The worse rate experienced was a record high for unemployment during November of 1982 with a 10.80% rate. There is hope though for the future with the unemployment rate slowly declining. In last several years...
Words: 913 - Pages: 4
...Testing Phillips Curve in long run in the US Economy Introduction: Phillips curve is one of the most startling observations made in economics and gained much popularity in 1960s. The inverse relationship between unemployment rate and inflation rate was first observed by William Phillips in 1958 in his study on British economy during the period 1861-1957. For many years this relationship has been used by policy makers to target unemployment and inflation levels. However, in recent times there are various doubts emerging to this concept as there are cases studied where the trade off between unemployment rate and inflation rate can be observed in the long run thus rendering this concept entirely short run in nature? (Phillips, A.W. cited in Ogbokor, 2005).It would be crucial yet interesting to test the validity of traditional long run Phillips curve as it used as a policy guideline and has had many controversies revolving around it for the same. Objective: Phillips Curve in the Long run: Examining the Long run relationship between unemployment rate and inflation rate in United States using univariate analysis (analysis based on descriptive statistics). Methodology: The data used for analysis has 58 observations collected over the period 1952-2008 consisting unemployment rate and inflation rate of US. It has been collected from Bureau of Labour Statistics and Measuringworth.com. We will make use of statistical tools to test the existence of relationship, if any...
Words: 561 - Pages: 3
...UNEMPLOYMENT 1. Introduction I have selected the topic on unemployment. Here I am going to discuss about a online news article regarding the unemployment rate in U.S. I found the news Yahoo.com under the finance sector which news is originally from AP, Associated Press firm in the United States. The article is titled as “Jobless rates rise in January in half of US States”. It summarizes about the unemployment rate that rose in 25 states and increase in 7.8 percent to 7.9 percent from December 2012 to January 2013. It talks on the different states in U.S. about the jobs increase and decrease. I plan to discuss about jobless rates in U.S. and what factors that have caused it. I use the article which focuses on U.S. to relate about the unemployment topic that I have chosen on. I will generally talk about macroeconomics concepts of GDP, business cycle and unemployment. 2. Macroeconomics Concepts on GDP The gross domestic product (GDP) is one the primary indicators used to gauge the health of a country's economy. It represents the total dollar value of all goods and services produced over a specific time period. Usually, GDP is expressed as a comparison to the previous quarter or year. Measuring GDP simply has two ways of doing it, the expenditure approach and the income approach. The expenditure approach is to add up the market value of all domestic expenditures made on final goods and services in a single year. From what I have learned, Final goods...
Words: 2450 - Pages: 10
...2 Per Cent Jump, Decline in Mining, Oil and Gas (Source: HuffPost Business) During the month of July, 2012 Canada has seen a 0.2 percent decline in its mining, oil and gas extraction. When looking at the different types of sectors, the manufacturing sector performed well with a 6.9% increase along with wholesale trade increase by 0.2%. Although Canada’s output has increased by 1.9%, its weakness still lies in the export sector with a $2.9 billion trade deficit for the month July. Summary: Unemployment rate holds steady at 7.4% (Source: CBC NEWS) According to Statistics Canada, Canada’s unemployment rate remained at 7.4% in October. In addition, October’s unemployment in 7/12 provinces and territories has increased especially in P.E.I with the highest unemployment rate increase by 11.7%. However, the city with the greatest increase in unemployment rate is Toronto with 8.6%. When comparing Canada’s overall unemployment rate with the U.S., the U.S. has a higher unemployment rate at 7.8%. Relation to Chapters 10 and 11 According to the Statistics Canada’s July 2012 report, there was a $2.3 billion trade deficit in Canada, indicating that Canada’s weakness lies...
Words: 1561 - Pages: 7
...there a relationship between rising US unemployment and the rise of the Canadian dollar? Canada’s financial stability depends on the health of America’s economy, as international trade accounts for 45% of Canada’s Gross Domestic Product (GDP) and 79% of exports are to the United States. Canadian and American unemployment rates are positively correlated for that reason, as exemplified in early 2009. Canada’s unemployment rate quickly steepened as the United States’ rate gradually increased to about 10% (refer to graph 1 and 2). During this time, Canada’s growing trade surplus became a deficit in only a few months (refer to graph 3). From this data, one can determine that Canada’s exports decreased rapidly due to rising economic turmoil in the United States. The effects on the dollar seemed to positively correlate. Canada’s dollar decreased in value compared to the US dollar; however, concluding that the reason for this change was due to the U.S. unemployment rate is inaccurate. The ever-changing exchange rate of the dollar is determined by many factors. As of 2011, Canadian and American unemployment rates remain high at approximately 7.3% and 9%, respectively. In addition, a trade deficit continues to exist in Canada. Nevertheless, the Canadian dollar is gaining strength over the American dollar, which contrasts with the weakened exchange rate in 2009 when the same conditions existed (refer to graph 4). Therefore, rising U.S. unemployment can have a positive or negative affect...
Words: 1619 - Pages: 7
...Unemployment in the World Today Today, we face economic struggles that seem to have no end. We face many different problems from our forefathers because things are just different today. Technologies, the way people do even the simplest tasks change everyday and the world has to change along with it. The Unites States has now entered a Recession. “A recession is a general slowdown in economic activity in a country over a sustained period of time, or a business cycle contraction. During recessions, many macroeconomic indicators vary in a similar way. Production as measured by Gross Domestic Product, employment, investment spending, capacity utilization, household incomes and business profits all fall during recessions. (Recession)” Many different people have many different solutions to this recession problem. Some do not even see it as a problem. There are also many different reasons that people believe it happened. The face is that a recession today is not okay. In this essay, I am going to write on unemployment and how it is affecting us today. Unemployment is a huge problem with recessions, people have to work to simply live. However, some unemployment is unavoidable. When people stop working then they get more dependent on the government, and the government really does not need that. Especially when we are so far in debt as we are now. The governments debt of today is $11,047,905,411,741.70 and that is not a good thing for us as Americans or future generations of Americans...
Words: 920 - Pages: 4
... YANG SUBJECT: U.S UNEMPLOYMENT RATE DATE: APRIL 10, 2016 Unemployment is a familiar and sensitive concept for people in the labor force. In particular, during the recession, a lot of people will loss the job and unemployment can have a great influence to the social stability. This memo will start with the definition and measurement of unemployment. Then it will show the impact of unemployment to the nation and the relationship between unemployment and GDP. After that, it will continue to discuss the how the unemployment rate will affect the Federal Reserve decision regarding to rate. In the end, historical data from different categories will be displayed to further discuss unemployment. Definition and Measurement Unemployment occurs when people are actively seeking for jobs but cannot find a job. The unemployment rate is a quantitative...
Words: 1470 - Pages: 6
...condition of the unemployment position is in today’s present economy, The Bureau of Labor Statistics (BLS) calculations shows that as of July 2014, the nation is at a rate of 6.2%. (Economy at a Glance, 2014) The state of Tennessee has a higher unemployment rate than the national average. It is 7.1% (Economy at a Glance, 2014) The BLS define both “unemployed person and unemployment rate as follows: Unemployed persons (Current Population Survey) Persons aged 16 years and older who had no employment during the reference week, were available for work, except for temporary illness, and had made specific efforts to find employment sometime during the 4-week period ending with the reference week. Persons who were waiting to be recalled to a job from which they had been laid off need not have been looking for work to be classified as unemployed. Unemployment rate The unemployment rate represents the number unemployed as a percent of the labor force. (BLS Information, 2014) It was further shown during the course of research that both the unemployment rate (6.2 percent) and the number of unemployed persons (9.7 million) improved slight in July. In the course of the last 12 months, the unemployment rate and the amount of unemployed persons have dropped by 1.1% and 1.7 million, in that order. The unemployment rate ticked up to 6.2 percent in July from 6.1 percent in June. (Ahead of the Bell: US Unemployment Benefits, 2014)...
Words: 656 - Pages: 3
...privatization as “Privatization is the process of transferring property from public ownership to private ownership and/or transferring the management of a service or activity from the government to the private sector”( Varner, 2006, p. 1). This paper assumes and proposes the privatization as independent variable and analyzes its impact on unemployment. So being an independent variable in a study it is very much appropriate to identify different aspects related to privatization. The significant contribution of Varner (2006) is that he has specified the forms of privatization as; “Complete Privatization, Privatization of Operations, Use of Contracts, Franchising, and Open Competition” (p. 1). In addition, he said that moves address the idea of reason what may be the causes ultimately ends up in privatizing the public entities. The provided list of seven reasons “Cost Reduction, Risk Transfer, Source of Revenue, Quality of Service, Expertise, Timeliness, Flexibility” (Varner, 2006, p. 4-6) may not be exhaustive one it has identified vary much prevalent potential causes also applicable in global scope. The other study variable proposed dependant is unemployment. Does literature any evidence regarding the very fact that privatization results in or...
Words: 4277 - Pages: 18
...US jobless rate stays above 8% for 43rd straight month: Survey – The Straits Times Sept 03, 2012 Introduction: This article discusses the unemployment rate in US. The unemployment rate has exceeded 8 per cent since February 2009. Payroll gains slowed from an average 226,000 in the first quarter to 73,000 in the April to June period, before picking up July. Including the July advance, it has taken the US three years to recover about half of the 8.8 million jobs lost as a result of the 18-month recession ended in June 2009. Additionally in September, 2012, there are about 6.5 million people that are job losers and persons who completed temporary jobs according to U.S. Bureau of Labor Statistics. This unemployment number is an imperfect measure because it excludes both marginally attached workers and part-time workers who want full-time jobs. The two economic issues we would cover in this paper are: 1) Lost Incomes and Production; 2) Structural Unemployment. Discussion: 1) The Lost Incomes & Production • Basically, unemployment creates personal hardships due to loss of opportunity of earning income. The loss of income results in less consumption and a lower living standard. While this problem applies to any resource, it is most important for labor. The owners of capital, land, and entrepreneurship can often earn income from more than one resource. Thus a loss of income from one resource is not a total loss of income. Many workers, however, often earn income...
Words: 1079 - Pages: 5
...economy. It includes unemployment, capital flows, poverty, inflation etc. We have covered three major topics with reference to US economy, namely- • Inflation rate in U.S • Unemployment rate in US • Is the recession in U.S over? The inflation rate is essential indicator of the economy. It shows how fast the prices fluctuate in the economy. It is measured by CPI (Consumer price index). Healthy inflation rate is 2%, once the unstable effects of food, gas and oil prices are uncovered. The Unites States have reported the latest annual inflation rate as 15%, as per BLS (Bureau of Labor Statistics). It was recorded in January 2013. Many people in America worry about the inflation rate, as the rise in prices could make lives tough, but as we have a look at the history of inflation rates, we get reassurance. The average long term inflation rate is approx 3.3%, and has very hardly ever reached double digits. In October 2013, the U.S consumer prices unpredictably fell and the inflation rate went to the lowest level in last four years which should have given the Federal Reserve an opportunity to preserve bond purchases for some time. This unexpected slip in consumer price index was due to sharp fall in gasoline prices in the previous month. In U.S. the most important types in unadjusted consumer price Index for all built-up consumers are shelter (31% of total index) and goods other than energy and food (20%). Food holds 14% of total index and 10% is held by energy. The US inflation potential...
Words: 1117 - Pages: 5
...positives of increasing the government spending while keeping the tax rate unchanged are as follows. If the government increases spending aggregate demand will be directly affected by the increase. If the demand increases, prices will rise until supply and demand are again at an equilibrium. The new equilibrium and GDP will be increased by an amount equal to the increased spending. Further, the multiplier effect of the government spending, when the government increase spending on purchases it will create more job opportunities. This will increase consumer spending which will encourage private investment spending to meet the demand. In turns that will create more jobs in the economy. The negatives of increasing government spending are as follows. It is very important to remember that government spending to stimulate the economy is not free. The funds are not going to come from thin air. The government has two options to generate the money without increasing taxes, borrowing the money domestically, or from foreign governments. Both cases increase the national debt, or cut some government programs to stimulate others. Borrowing the money domestically, from local investors, will stop these investors from creating new businesses. This will lead to less job creation in the economy. When the national debt increases the future tax rate will increase which will slow the economy in the future. That will lead us to conclude that stimulating the economy by borrowing is a short term...
Words: 1755 - Pages: 8
