Explain the various phases of the business cycles. What does each phase imply?
2. Define Structural and Frictional Unemployment and explain why each of them occurs.
3. Solve these problems:
a. Mary was fired by XYZ company on February 1st 2020. She applied for unemployment benefits and started looking for a job immediately after being fired. She got angry because, in spite of sending hundred of resumes, no one responded to her and called her for an interview. So, she gave up looking for a job during the third week from the date of being fired. What kind of worker is she considered?
b. Dr. James Lighthouse has just graduated from Stony Brook University with a Dental Degree. He got his license to practice dentistry. But he has no office to practice in. His dad is building a Dental Office for him and it will be ready for practice in 3 months. What kind of unemployed person is Dr. Lighthouse considered?
c. Kimberly used to be my secretary in 1990. She was hired because she knew shorthand. She was fired eventually. (shorthand is a skill when a person transcribes Boss’s dictation in shorthand and then typed the letters and sent them out). If she were to apply for a secretary’s job in 2020, she would not be hired. What category of unemployed would she fall under?
d. Calculate the unemployment rate for Ireland, if the number of unemployed is 3 million and the number of employed is 40 million.
1. Define and explain the concept of Inflation and describe the difference between demand-pull and cost-push inflation
2. What is the difference between inflation rate and core inflation rate?
3. Calculate the CPI
The value of the basket in 2015( the base year) was $420 and the value of the basket in 2018 was $530.
4. Calculate the inflation rate
CPI in 2010 was 115 and the CPI in 2011 was 131.
(Answer any 2)
What are the price related determinants of Aggregate Demand?
Explain the key differences between the philosophies of J.M.Keynes and the Classical economists.
With the help of examples, differentiate between individual demand, market demand, and aggregate demand.
Describe the concept of a consumption function. Differentiate between autonomous and induced consumption. What is the role of MPC in the discussion of consumption function?