- Suppose you live in a community of 100 people where everyone is able and seeks to work. If 75 people are over 16 years old and 50 of them are employed.
- (a) Calculate the unemployment rate in this community? (b) what is the labor force participation rate?
- What are the three major types of unemployment? What are their causes?
- Discuss the costs associated with high inflation.
- (a) What is the business cycle?
(b) Explain what is happening during each phase of the cycle with:
I. output
II. employment
II. and inflation.
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