Module 5: (Answer any 1 question; answer all the parts in the chosen question; each question is worth 4 marks: 4 * 1= 4 marks) 1A)If inflation rises unexpectedly by 5%, oud a state government that had...

Module 5: (Answer any 1 question; answer all the parts in the chosen question; each question is worth 4 marks: 4 * 1= 4 marks)

1A)If inflation rises unexpectedly by 5%, oud a state government that had recently borrowed moneyto pay for a new highway benefit or lose?

1B) Who in an economy is the big winner in inflation?

(or)

2)Beginning in the 1970s and continuing for 3 decades, women entered US labour force in a big way. If we assume that wages are sticky in a downward direction, but that around 1970, the demand for labour equaled the supply of labour at current wage rate, what do you imagine happened to the wage rate, employment and unemployment as a result of an increase in Labour force participation?

(or)

3) How do government statisticians measure consumer price index ?

(or)

4) With some data available for US labour force, such as:

1. Total adult population over the age of 16 - 249.9 million


2. In the labour force – 157 million


3. Employed – 148.3 million


4. Unemployed 8.7 million


5. Out of labour force – 92.9 million

Calculate:

1. Unemployment rate


2. Percentage in the labour force


3. Percentage out of labour force

short written assesment need bit of more explanation.
You are a macroeconomist who is asked to explain how the Australian economy is performing.