Unit 2 Important

Question 1

What factors cause an increase in income inequality

Answer 1

1. Technology
2. education
3. tax policy
4. trade

Question 2

Unemployment rate for illinois

Answer 2

4.8%

Question 3

Unemployment rate for the US

Answer 3

3.7%

Question 4

How do people lose from trade

Answer 4

Imports replace the work they do.
Those with higher education and training adapt better than those with a high school education or less

Question 5

Why is demand pull inflation better than cost push inflation

Answer 5

With demand pull GDP increases with the shift of AD to the right.
Although inflation is rising GDP is also rising which it is assumed that unemployment is decreasing.