Production, Unemployment, and Inflation
Case Assignment
Submit a 4- to 5-page paper that addresses the following questions. Be sure to use references within the paper to support your answers.
Why is there unemployment even when the economy is at “full employment”? What are some “costs of unemployment”?
Is the CPI a biased measure of the inflation rate? Explain your answer.
Explain how some government tax revenue and spending can depend on the state of the economy.
Explain some limitations of using GDP as an indicator of standard of living (be sure to do some research on your own to find any alternative measures).
Assignment Expectations
Use information from the modular background readings as well as any good quality resource you can find. Make sure you cite all resources you use and provide a reference list at the end of your paper.
Length: 4 to 5 typed and double-spaced pages.
In addition to the overall quality, depth, grammar, and organization of the paper, the following will, in particular, be assessed:
The level of your understanding of the key concepts of the major macroeconomic indicators.
Some in-text references to modular background readings (APA formatting encouraged).
Upload your assignment to the Case 1 dropbox when completed.
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Unemployment is characterized by the inability to find work for people who are willing and ready. According to Shimer (2012), labor force comprises of both employed and no employed people are 16 years of age and above. They also need to be non-institutionalized. It is important to note that at any given point in time, unemployment can never be zero; there will always be people working at various institutions and departments and others looking for work. It is a balance of nature. However, unemployment can be greatly reduced in an economy. When the economy is at its full potential, there is some….
APA
1247 words
