Answer the following questions using the information given in the text below. It is your...

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Answer the following questions using the information given in the text below. It is your responsibility to refer to alternate sources to make your arguments in answering questions asked. Make sure you have answered all of the questions and that you provide appropriate APA referencing where required. Questions 1. Discuss the difference between real and standard unemployment. What are the metrics used by BLS (Bureau of Labor Statistics) US to define the types of unemployment? Refer Charts (released by BLS) for the period (Jan 2020 – Jan 2022) and explain the macro factors behind the trendline. 2. How does inflation impact the health of the economy, please elaborate one positive and one downside of having high inflation? Illustrate this with a real economic scenario, you can choose any country worldwide for this answer, (the scenario should have occurred/occurring in real time, predictive scenarios would not count towards the answer) 3. It is expected that oil and gas prices would decrease in 2022, assuming this happens explain the impact, a decrease in the oil and gas prices would bring on the economy and how would it impact the real GDP of the US economy? 4. Do you agree with the Fed’s policy of the interest rates kept under check in the pandemic hit economy, provide your reasons for your choice of Yes/No 5. How do you explain the situation of the supply shock in the US economy vis-à-vis labor shortage and “the great resignation”? What is the long-term impact of these on the US economy?

Komalavalli · Accepted Answer

1.
The standard unemployment rate (U3) is the percentage of people who are out of work. It might be a lagging indicator, which means that it increases and falls in response to changing financial conditions rather than anticipating them. When the economy is in bad health and jobs are few, the unemployment rate is likely to climb. It can be expected to fall when the economy is growing at a steady pace and employment is typically plentiful U-3 for January 2022 was 4%.
U-6 rate, sometimes known as the "real" unemployment rate, is an elective level of unemployment that encompasses groups such as disabled specialists who have stopped looking for work and the underemployed who are working part-time because they can't find full-time job. In January 2022, the U-6 rate was 7.1 percent, down from 7.3 percent in December 2021.
From above unemployment graph we see that after March 2020 the unemployment rate peaked due to the outbreak of covid 19 which disturbed the economic activity, at this time economic output was low, inflation rate also high due to decrease in business activity.The unemployment started to fall when there was a slow open up of business activity which also increased economic output.Till January 2022 the unemployment rate was high compared to pre-covid level.
2. Costs tend to rise in a healthy economy, a phenomenon known as inflation. While you may not like it as a customer, direct cost growth might be a sign of a healthy, thriving economy. In general, during periods of expansion, remuneration tends to rise at roughly the same rate. According to the World Bank's Sri Lanka Improvement Overhaul, Sri Lanka is facing a severe financial crisis as a result of job and earnings losses, high food inflation, and the country's declining finances (SLDU). Expansion has been fueled by the government creating money to pay down home loans and distant bonds.
According to the World Bank, districts like Kandy and Ratnapura, which are fundamentally rural,

Answer the following questions using the information given in the text below. It is your responsibility to refer to alternate sources to make your arguments in answering questions asked. Make sure you...

Answer To: Answer the following questions using the information given in the text below. It is your...

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