Chat with us, powered by LiveChat When the economy is at full employment is the unemployment rate at 0 percent? Why or why not? Would you desire to live in an economy with the unemployment rate at 0 percent | WriteDen

## 21 Jan When the economy is at full employment is the unemployment rate at 0 percent? Why or why not? Would you desire to live in an economy with the unemployment rate at 0 percent

Problem Set: Unemployment and Inflation
Q1: When the economy is at full employment is the unemployment rate at 0 percent? Why or why not? Would you desire to live in an economy with the unemployment rate at 0 percent?
Q2: Here are some recent data on the U.S. consumer price index: Year CPI 2000 172.2 2001 177.1 2002 179.9 2003 184 2004 188.9 2005 195.3 2006 201.6 2007 207.3 2008 215.3 Calculate the rate of inflation from 2001 to 2002 Calculate the rate of inflation from 2007 to 2008 *Show your Math
Q3: Using the CPI data in question 5 determine if Joes real income is increasing. Calculate the real his real income. Year 2000 2005 2008 Nominal Income \$40,000 \$41,000 \$42,000 Real Income
Q4: Calculate the unemployment rate for the following country: Total Population Under Age 16 Retired Able but stopped looking for work Currently Employed 978 250 100 75 450 Hint: Calculate the labor force first.
Q5: What are the three main goals of every economy and how do we measure progress towards goals?

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