Description
Define the concept of full employment and recession as the two different states of the economy. Do you agree with the statement the actual unemployment rate must be less than one or close zero when we consider the economy at full employment? Why or why not?
How do you measure the unemployment rate? Provide the actual unemployment rate currently published for the US and China and explain whether the actual current unemployment rates indicate a state of recession or full employment or over employment.
What is the minimum rate of RGDP growth rate needed for maintaining full employment of the economy? Given that condition,
Lack of workers may impact GDP. Do you agree with this statement? Why or why not? Briefly explain why the inflation rate accelerates when the actual unemployment rate falls below the rate of unemployment which is considered to be the natural rate of unemployment.
Sample Solution