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econ questions 25

Below are discussion questions for Week 4 and they are all related to Chapters 6 & 7 on Unemployment and Inflation. Here are the questions:

1. Out of the FOUR key types of unemployment, (i) which one can be controlled through government policies or actions? (ii) What exactly should the government do to reduce this type of unemployment?

2. What are the main causes of cyclical unemployment and its relationship with the business cycle.

3. If CPI in year 1 is 170 and CPI in year 2 is 185, calculate the rate of inflation using the formula shown on page 170 in the textbook.

4. Comment on the following statement: Individuals who are “underemployed” are no longer counted as in the labor force. True or false and be sure to justify your answers.

5. (i) Define discouraged workers and (ii) indicate reasons as to why someone who might be classified as a discouraged worker.

6. What are the two types of inflation?

7. Out of the two types of inflation, which is the one that would cause a stagflation and how?

This is a 21-point assignment so be sure to be as detail and thorough as you can. And you must place a “number” in front of your answers that correspond to each of the question; failure to do so will result in points being deducted.

I am also reading from the book Principles of Macroeconomics by H.Singh , Tim Sweeney, and Jeff Gray


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