Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition)
7th Edition
ISBN: 9780134472669
Author: Blanchard
Publisher: PEARSON
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Chapter 1, Problem 6QAP
a.
To determine
The
b.
To determine
To explain: The recession that has the largest increase in the rate of unemployment.
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Q2. Go to the Statistics Canada website https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810000501 to view the annual average Consumer Price Index for Canada. Change the Reference period years from 1999 to 2021 and click Apply to see the updated data table. Answer the following questions and provide data and calculations where necessary.
Calculate the rates of inflation between 2018-2019 and 2020-2021. Round your answer to two decimal places.
The structural unemployment rate is 2.89% and the frictional unemployment rate is 2.69%. If current cyclical unemployment rate is 8.00%,
what is the current natural unemployment rate?
Write your answer as a percentage and round at two (2) decimals. Do not write the percentage (%) sign, and use a minus (-) in front of a
decrease.
What are the two biggest recessions in terms of length and magnitude from the graph, the shaded areas show recession and 2020 is not included?
How does the unemployment rate react during the two main recessions you have identified?
What was the level of the unemployment rate during the first and the last quarter of negative growth for those two recessions?
What do you conclude about the link between recession and the variation in unemployment?
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Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition)
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- In a country with a population of 70 million people, there are 30 million children under the age of 15 years, 20 million employed, 10 million pensioners, 7 million unemployed and looking for work. a) The unemployment rate according to the strict definition is 35 % b) The unemployment rate according to the expanded definition is 25.9 % c) The unemployment rate according to the strict definition is 10 % d) The unemployment rate according to the expanded definition is 33.3 %arrow_forwardBefore Phelps’s work, the prevailing view was that economic policy makers faced a tradeoff between unemployment and inflation: Policies that reduced unemployment would increase inflation, and policies that reduced inflation would increase unemployment. This relationship between inflation and unemployment seemed to be supported by the data. For example, the following table shows the unemployment rate and inflation rate for the United States from 1961 to 1969. The inflation rate is measured by the percentage change in the GDP deflator. On the following graph, plot the black points (cross symbol) to show the combinations of unemployment and inflation that existed from 1961 through 1969. Plot the points in order, starting with 1961 and ending with 1969. (Hint: When you're done, place your cursor over each of the points you plotted to ensure that you've placed them on the exact coordinates you intended to.) Based on data in the table, when the inflation rate increased from 4.6% to 5.8%,…arrow_forwardWhy is it difficult to accurately measure the unemployment rate in the U.S.? Do you think the current unemployment rate is overstated, understated, or exactly right?arrow_forward
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- Suppose you are given the following information about a country: What is the total unemployment rate for this country? % (Enter your response as a percentage rounded to two decimal places.) Problem 6-7 Frictional unemployment rate Seasonal unemployment rate Cyclical unemployment rate Structural unemployment rate 2.05% 0% 2.22% 4.67%arrow_forwardSuppose you are an advisor to the Business Cycle Dating Committee. You are asked to look at macroeconomic data to evaluate whether the economy has entered a recession this year. Which data do you look at? How does the economy behave at the onset of a recession? Explain how unemployment changes over the business cycle. Why do these changes occur?arrow_forwardRefer to the following figure to answer the following questions. Figure 9.3: Percent Change in U.S. Employment: 1980-2015 1.5 PERCENT CHANGE 1.0 0.5 0.0 -0.5 -1.0 1986 1988 1984, 1988, and 2006 1988 and 2014 0661 1983, 1990, and 2001 2005 1992 1994 1996 1998 2000 YEAR Based on the data presented in Figure 9.3, which of the following periods is/are likely (a) recession(s)? Not enough information is given. 2002 2004 2006 2008 2010 2012 2014arrow_forward
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