MacmidIK Essay Example | Topics and Well Written Essays - 1250 words

MacmidIK - Essay ExampleB More will be demanded at lower prices 14. A Income 15. B A decrease in the price of a substitute product. 16. B A technological change in the production of the intimately 17. C An increase in the taxes paid by telephone companies 18. B Inelastic 19. A mostly results in substantial negative externalities 20. D A surplus of 600 units 21. C $20 And 600 units 22. D employ private bargaining when property rights 23. A eliminate all pollution rights 24. B changes only when at that place is change in out put 25. A reliable gross domestic product doubles 26. C nominated GDP and real GDP both decreases 27. A Family will need to spend more in order to maintain its standard of living 28. C Nominal GDP divided by real GDP 29. B 110 30. C Couples remodelling their own homes 31. A 1 and 2 32. D fixed political system 33. B Movement from a point inside to a point remote the production possibility curve 34. B 6 percent 35. B Cyclical 36. C fr ictional 37. C Is equal to the total frictional and structural employment 38. D Actual GDP is great than potential GDP 39. B Actual GDP is less(prenominal) than potential GDP 40. A both 1 percent that the actual employment exceeds the natural employment rate, a 2 percent GDP gap is created 41. A 4.0 Percent 42. C Demand-pull inflation 43. C Cost push inflation 44. A Increases by 3% 45. ... B Real GDP will increase 55. C 280 billion 56. D An increase in real interest rates. 57. A Productivity 58. D 4 59. C 3 60. A Supply increase Short Answers 1. a) Making necessary computation to complete the table to a lower place Year 1 Year2 exertion force 95,450 108,250 Employed 90,325 100,830 idle 5,125 7,420 Unemployment rate (10%) 94% 94% Unemployed= Labour force-employed Year 1=95450-90325= 5,125 Persons Year 2= 108,250-100,830=7,420 persons Unemployment rate = number of employed battalion ? Labour force?100 Year 1 = 90,325?95,450?100 =94% Year 2 = 100,830 ? 108,250?100 =93% b) Possibility of increase in employment and unemployment between year 1 and 2 Based on the above computation, it can be scrutinized that there was an increase in number of employed and unemployed people between the two periods. This is because there is a possibility of having both favourable and admonishing economic conditions starring(p) to an increase in number of employed and unemployed people (Taylor, 2007). The above assertions whitethorn be substantiated by Keynesian theory of economics that holds that a trade off exists between unemployment and inflation, this trade off may be presented using Philips curve (Tucker, 2011), whereby, during favourable economic conditions, inflation decreases while employment increases (Tucker, 2011). On the contrary, during unfavourable economic conditions, inflation rates decrease while unemployment increases (Tucker, 2011).Therefore, based on the above discussion, it is possible to bewilder both increase in employments and unemployme nt between the two periods. In above connection, an increase in unemployment may be attributed to technological advancement. This is so because most people get laid off as less human labour is needed (Layard,