Answer:
Increase; higher; more; lower; lower
Explanation:
Expansionary policy is required to combat unemployment in the economy. If the government increases the money supply, the interest rate falls. This causes an increase in investment as lending becomes cheaper. Increase in investment causes an increase in the aggregate demand. Increased demand further causes the price level to rise.
Increase in prices will motivate producers to produce more. In order to increase output producers will hire more workers. Consequently, the rate of unemployment will fall. We see that at higher inflation unemployment is lower and vice versa. This means that there is a trade-off between inflation and unemployment.
CPI (Consumer Price Index) is a measure of changes in prices paid by consumers for goods and services. It is used to estimate the changes in prices.
Therefore;
Change in prices = (CPI in current year - CPI in base year)/CPI in base year
Substituting for the values given in the current problem
Changes in prices = (108-100)/100 = 8/100 = 0.08 or 8%.
This shows that prices increased by 8% in the current year compared to the base year.
Answer:B. The portfolio of smaller stock are typically less volatile than individual small stock.
C. On average smaller stock have lower return than larger stock.
Explanation:
The larger stock most times have a higher volatility than smaller stock and usually have better records of performance, this therefore makes their returns higher than lower stock.
On an average the volatility of a smaller stock is greater than that of a portfolio of smaller stock for the portfolio stock will compensate for one another to limit the volatility.
A treasury bill has a government guarantee, their return is therefore lower and same applies to their volatility when compared to smaller stock.
It’s clearly contributing to increased integration of labor markets and closing the wage gap between workers in advanced and developing economies, especially through the spread of technology. It also plays a part in increasing domestic & income inequality ^^
Population - 50,000
Employed - 45,000
Students not looking for work - 1,000
To calculate Boone's unemployment rate you'll use the formula:
Unemployment rate = number of people unemployed / labor force
Those that fall into the unemployment category are those that are not working but are actively looking/wanting to work. Students, stay-at-home moms etc that are not wanting to work, though unemployed, to not fall into this category.
The labor force is made up of everyone willing and able to work.
First, let's subtract the students who are not looking for work from the population so get the labor force. 50,000 - 1,000 = 49,000 (labor force)
Next, to get the number of people unemployed let us subtract the labor force of 49,000 by those already employed of 45,000. 49,000 - 45,000 = 4,000
Finally, we are able to calculate the unemployment rate of Boone.
Unemployment rate = number of people unemployed / labor force
Unemployment rate = 4,000/49,000= .081 multiply by 100 to get the percentage. 8.1%
Unemployment rate of Boone is 8.1%
