economic fluctuations and unemployment Flashcards
The figure is the graph of the natural log of UK GDP per capita between 1875 and 2010. You can click on the image to enlarge it.
Based on this information, which of the following statements is correct?
the slope of the best fit straight line is the average compound annual growth rate
equation for employment rate?
employed/population of working age
The figure shows the 2014 statistics for the labour markets in the UK and in Greece in millions (source: International Labour Organisation ILOSTAT database). You can click on the figure to enlarge it.
Based on this information, which of the following statements is correct?
the participation rate was higher in the UK then it was in greece
he figure shows the relationship between real GDP growth and change in unemployment for the US between 1961 and 2011 (source: OECD; World Bank World Development Indicators). You can click on the figure to enlarge it.
The equation shown is the regression result for the best fitting line. Based on this information, which of the following statements is correct?
with real GDP falling by 2.8% in 2009, the predicted rise in the unemployment rate would have been 2.4%
Which of the following statements is correct regarding measuring GDP?
GDP can be measured as either the total spending on domestically produced goods and services or the total value added of domestic production or the sum of all incomes recieved on domestic production
The figure shows the consumption choice of a consumer over two periods. His initial endowment is (y, y), that is an income y in both periods, which is depicted by point A. If possible, the consumer prefers to consume the same amount in both periods. The interest rate is r.
Now assume that there has been a temporary shock such that the income in period 1 is reduced to y’, while the period 2 income is expected to return to y. Assume that if a consumer is credit constrained, then he will not be able to borrow at all. Based on this information, which of the following statements is correct?
if the consumer is not credit constrained then he will consumer c’ in both periods such that c’=u-(c’-y’)(1+r) (YED-repayment in period 2)
The figure shows the path of income for a household that receives news about rise and fall in future income at the depicted times. You can click on the figure to enlarge it.
Assume that if the household is not credit-constrained then it prefers to smooth out its consumption. Based on this information, which of the following statements is correct?
if the household is credit constraint and has a weakness of will then its consumption will match its income path
Consider a local economy comprising just two firms, Firm A and Firm B. Currently both firms have low capacity utilisation. The table shows the profits (or losses if negative) when the firms invest or not invest. You can click on the table to enlarge it.
Based on this information, which of the following statements is correct?
to acheive the pareto effecient nash equillibruim the firms have to coordinate in some way or devlop business confidence
