ANSWER THE FOLLOWING QUESTIONS IN AT LEAST 100 WORDS PER QUESTION, USE TEXT AS A REFERENCE NO OUTSIDE SOURCES ARE NEEDED. THE REFERENCE TO THE TEXT
IS: Sexton, R. L. (2013). Exploring Economics (6th ed.). South-Western Cengage Learning.
Study and distinction the three types of unemployment, (frictional, structural, and cyclical). When you may have been a protection maker which form of unemployment might be most bothersome to you?
What costs are associated to inflation? Make clear on the very least three completely totally different costs that individuals or firms experience when inflation rises.
Make clear why swap funds are normally not included in GDP.
4. Using the weather of GDP coated partially 22.1 of your textual content material, make clear which component might be affected by the following (only one component have to be chosen for each state of affairs):
a. You buy an Italian purse.
b. You buy a model new dwelling.
c. New lanes are added to Interstate 40.
d. You buy groceries.
e. You buy a model new washer and dryer.
5. Suppose the monetary system is at a macroeconomic equilibrium as is confirmed partially 25.6 of the textual content material. The federal authorities decides to current every taxpayer a $500 tax refund.
a. What happens to the mix demand curve after the refund?
b. What happens to the worth stage after this variation?
c. Is precise wealth elevated or decreased on account of the refund?
6. Consider Half 22.7 in your textual content material. Study and distinction the outcomes of the Classical Model and the Keynesian model after an expansionary protection. Perceive that the monetary system is in a recession and by no means at full employment. Sort out the following:
a. The type of the mix present curve in each model in every the long-run and short-run.
b. The impression of an expansionary protection on combination demand in every the long-run and short-run.
c. The impression of an expansionary protection on the worth stage in every the long-run and short-run.