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Please answer my paper. Discuss how each of these options will-(Answered)

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Please answer my paper.?

  1. Discuss how each of these options will affect wages and labour productivity, potential GDP and real GDP. Will they lead to growth in real GDP and rises in real GDP per capita??

Important: before attempting this assignment, please read the ?notes and instructions? for this assignment.

 


 

VERSION A

 

Question 1A (5 marks)

 

The table below reports some labour market figures for a hypothetical country, Blefuscu

 

in 2005. Assume that there are only two types of employment: full time and part time.

 

Everyone who is not employed is unemployed. Calculate the Labour force participation

 

and ii) unemployment rate. Show all your calculations. (5 marks)

 

Population

 


 

1,300,000

 


 

Working age population

 


 

850,000

 


 

Number of people Not in the labour force

 


 

297,500

 


 

Part-time employment as a percentage of total employment

 

Number of full-time employees

 


 

20%

 


 

416,364

 


 

Rate of underemployment

 


 

37%

 


 

Question 1B (5 marks)

 

The government of Blefuscu announces that the unemployment rate fell from 2005 to

 

2006. The government says this is positive news as it shows more jobs are being created

 

and less people are unemployed. The labour unions, on the other hand, disagreed with

 

this assessment and stated that they could find no evidence that additional jobs have

 

been created between 2005 and 2006.

 

Your task is to explain how the unemployment rate can fall even if there are no new jobs

 

being created. First, using the numbers you have been given in 1A as the 2005 figures,

 

fill in the table below by developing a set of numbers that show how the unemployment

 

rate can fall even if there are no new jobs being created. Assume no change between

 

2005 and 2006 in the population, percentage of part time workers and working age population. Second, discuss in detail how the numbers show the unemployment rate can fall

 

even if there are no new jobs being created. List two possible reasons why this may occur.

 

Year

 


 

2005

 


 

2006

 


 

1,300,000

 


 

1,300,000

 


 

Working age population

 


 

850,000

 


 

850,000

 


 

Number of people Not in the

 

labour force

 


 

297,500

 


 

Part-time employment as a

 

percentage of total employment

 


 

20%

 


 

Population

 


 

Page 1 of 4

 


 

______

 

___%

 


 

Number of full-time employees

 

Rate of underemployment

 


 

416,364

 

37%

 


 

_____

 

___%

 


 

Question 2

 

Economists are deeply puzzled by our desire to have children. First, kids are really expensive - the biggest financial decision most couples will make. Forget

 

the cost of buying the family home; the kids you choose to populate it with will

 

end up costing just as much, or more, over a lifetime. A survey released last

 

week by AMP and the National Centre for Social and Economic Modelling

 

found the typical Australian family spent $812,000 raising two kids. This is an

 

increase of nearly 50 per cent in just six years. ?Economists like to assume we

 

are rational individuals who make decisions based on anticipated costs and benefits.

 

-The Sunday Mail (Qld) May 26 2013

 

You are the senior Economic advisor to the Prime Minister who is currently considering

 

how to reduce the cost of having children and promote more economic growth. Some of

 

her party want to continue John Howard?s ?baby bonus? scheme that provides a lump

 

sum of cash to parents upon the birth of a child. Others argue that the government

 

should instead aim to focus on lowering the costs of educating children by making tertiary education free.

 

A) Discuss how each of these options will affect wages and labour productivity, potential GDP and real GDP. Will they lead to growth in real GDP and rises in real

 

GDP per capita? use the potential GDP and labour market diagrams in your answer. (6 marks)

 

B) Imagine that whatever strategy will be chosen, it will be kept for the next three

 

decades. In terms of achieving growth in the long run, discuss which strategy

 

would lead to higher growth rates and explain why (2 marks)

 

C) How would each strategy affect the standard of living? (2 marks)

 


 

Page 2 of 4

 


 

Question 3

 

Hint: For this question read the textbook about the great recession (a.k.a the GFC) on

 

page 135 and page 308-309 of the textbook. Page 304 to 305 of the textbook provides

 

some information for Australia Each student is assigned a country. You can find your

 

country in the "Markcentre".

 

I. Go to the following website: http://www.google.com/publicdata/explore?ds=k3s92bru78li6_

 

II. This data is sourced from the IMF's World Economic outlook. Find data for the

 

country you have been assigned to? see mark centre for more information.

 

III. Select "national accounts" and choose "GDP, constant prices, % change", This is

 

real GDP. Select your country from the list and also select Australia. Choose the

 

years 2004 to 2016 using the ruler at the bottom of the page. Use "print screen"

 

to copy and paste them into your assignment document

 

IV. Repeat the same exercise to create a second graph for the unemployment rate see "People" and "Unemployment rate %"

 

V. Repeat the same exercise to create a third graph for inflation - see "Money" ->

 

"Inflation, average consumer prices (%):

 

Question 3A (6 marks)

 

Use the information from the graphs above and your own research to draw a AD-AS diagram for the country you have been assigned to and Australia at three points in time:

 

2005, 2007 and 2012.

 

The AD-AS should clearly show the price level, Real GDP and unemployment rate.

 

Clearly identify either a Recessionary gap, inflationary or the long run equilibrium at

 

the each time point.

 

Briefly explain what evidence you have used to justify your graph. You may use any in formation from credible sources (wikipedia and similar websites are NOT credible). We

 

highly recommend using the IMF's World Economic outlook reports from 2004 to 2012

 

found here:

 

http://www.imf.org/external/ns/cs.aspx?id=29

 

Question 3B (2 marks)

 

For the country you have been assigned to (not Australia), do research and explain what

 

happened in the economy between 2005-2007 and 2007-2012. Show how these changes

 

took place by shifting the appropriate lines in a AD-AS diagram.

 

Question 3C (2 marks)

 

Based on both research and the above figures, briefly discuss whether the country you

 

have been assigned to and Australia was hurt more by the GFC in terms of changes in

 

real GDP and unemployment.

 


 

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Paper#9256974 | Written in 27-Jul-2016

Price : $16
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