1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ioda
3 years ago
13

Using a neoclassical model, what will the level of cyclical unemployment be when an economy is producing at potential GDP?

Business
1 answer:
MakcuM [25]3 years ago
8 0

Answer:

<em>Zero</em>

Explanation:

There are three(3) types of unemployment recognized by economists;

<em>Structural unemployment:</em> This occurs where innovation and technological improvement render workers unemployable because their is a mismatch between the available jobs and the skills possessed by willing workers. For example, the introduction of online classes might  reduce the number of teachers needed by a school.

<em>Frictional unemployment:</em> This is used to describe the number of people looking for jobs because they are transiting from one job to another.The addition of the structural and frictional is know as the <em>natural rate of of unemployment.</em>

<em>Cyclical unemployment</em><em>:</em><em> </em>this is caused by fluctuation in real GDP around the potentila GDP. For example, when the real GDP falls significantly for a sustained period of six month. At a time like this, the economy is contracting and it is evident by a negative growth rate in real output, firms do lay off workers because the business climate is not favorable.This is called <em>recession</em>. The cyclical unemployment is the difference between the actual rate of unemployment and natural rate. During recession, the actual is always greater thant the natural; and the balance is cyclical unemployement

<em>Full employment output and cyclical unemployment</em>

The potential GDP is the level of real GDP achieved where an economy has fully employed all of its resources ( land, labour, capital and entrepreneur). It is also called <em>full employment GDP</em>. An economy operating at its potential GDP level will still record some level of unemployment which is known as natural unemployment. And its actual rate of unemployment will be equal to the natural rate.

<em>In other words, at the full employment output  level, the actual rate of unemployment is the same the natural rate of unemployement. So there is zero cyclical unemployment rate</em>

You might be interested in
Internal control are not designed to safeguard assets from
lidiya [134]
Sdiksdfiofjsfhjiofrafhiodfdhosisdfofhfhudfsohisdf
8 0
3 years ago
The Town of McHenry has $13,000,000 in general obligation bonds outstanding and maintains a single debt service fund for all deb
VLD [36.1K]

Answer:

Dr Cash $13,000,000

Cr Other financing source- refunding of existing debt $13,000,000

Dr Other financing uses - refunding of existing debts $13,000,000

Cr Cash $13,000,000

Explanation:

Preparation of the Journal entries to record the transaction on the books of the debt service fund.

Based on the information given we were told that the Town of McHenry has the amount of $13,000,000 in general obligation bonds outstanding in which On July 1, 2017, a current refunding of the amount of $13,000,000 took place which means that the Journal entries to Record the transaction on the books of the service debt fund will be :

Dr Cash $13,000,000

Cr Other financing source- refunding of existing debt $13,000,000

Dr Other financing uses - refunding of existing debts $13,000,000

Cr Cash $13,000,000

4 0
3 years ago
In order to be impartial and lawful, a pre- inspection agreement must be
lakkis [162]
A. paid for by the lender. 
<span>B. signed by the real estate agent. </span>
<span>C. used within 30 days </span>
<span>D. negotiable and capable of being altered. </span>

<span>The Standards of Practice published by the American Society of Home Inspectors (ASHI) are quite inclusive and </span>
<span>A. describe the procedures used in a termite inspection. </span>
<span>B. explain that inspectors may never examine heating systems. </span>
<span>C. can be referred to in court, if necessary. </span>
<span>D. list the fees inspectors must charge for their services </span>
<span>(I know for this question it is NOT D.) </span>

<span>Another term for a pre-inspection agreement is </span>
<span>A. standard of practice </span>
<span>B. pre-sale inspection. </span>
<span>C. scope of work. </span>
<span>D. partial inspection. 
hope that helped</span>
8 0
2 years ago
Read 2 more answers
Tune Products, Inc., offers to sell to Unlimited Sales Company one hundred MP3 players at $50 a piece, subject to certain specif
4vir4ik [10]

Answer:

765445556677778

Explanation:

6 0
3 years ago
A cellular service provider charged a customer $40 for 150 minutes of airtime. The same provider charged another customer $55 fo
yKpoI14uk [10]

Answer:

C(t)=0.1t+25

Explanation:

So, we are looking for a linear equation. As we know Equation of a line has different forms, let´s use slope-intercept form:

C(t)=mt+b

Where C is the total cost as a function of t, t is the amount of airtime in minutes, m is the slope and b is the y-intercept

Now, let´s use the data provide in order to find m and b:

40=150m+b   (E1)

55=300m+b   (E2)

We have a 2X2 system of equations, let´s solve it using elimination method:

2(E1)-(E2)

25=0+b\\b=25

Replacing b in (E1) or (E2):

m=\frac{40-25}{150}

m=\frac{1}{10}=0.1

Knowing the slope m and the y-intercept b the linear model that represents the total cost as a function of t is:

C(t)=0.1t+25

You can check the results evaluating t=150 and t=300, the results must be 40 and 55 respectively

6 0
3 years ago
Other questions:
  • The purchase of overseas production and marketing facilities is an example of
    10·1 answer
  • What is the problem with creating a promotional message to use for all countries?
    9·1 answer
  • At the end of Year 1, Fulton Corporation estimates uncollectible accounts to be $10,000. Actual bad debts during Year 2 totaled
    5·1 answer
  • What makes government contracts unique?
    14·2 answers
  • At the end of the fiscal year, Kappa Pet Co. has an outstanding purchase commitment for the purchase of 1 million gallons of jet
    5·1 answer
  • Antiques R Us is a mature manufacturing firm. The company just paid a $9 dividend, but management expects to reduce the payout b
    12·2 answers
  • In the books of seller, ____ is deducted from the invoice price when the buyer pays earlier or on the date/term stipulated
    7·1 answer
  • _______________ tasks are non-repetitive in nature and involve considerable
    7·1 answer
  • When comparison shopping, all of these hint at a good deal EXCEPT
    15·1 answer
  • The May bank statement for Rental shows a balance of $6,300​, but the balance per books shows a cash balance of $8,200. Other in
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!