PART ONE. Briefly explain and illustrate how the unemployment rate and labor force
participation rate relate to the production possibilities frontier. Give
several examples of demographic, cultural, or personal decisions that
might change the LFPR.
PART TWO. Explain and illustrate how the interest rate effect supports the idea of a
negatively sloped AD curve.
Solution
unemployment means there is no work for the people who are in need to work and ready to work and express their willing to work, but labor participation rate says about how much per cent of population is involved in the work process. in second process it considers the population as a whole irrespective of their abilities and skills.
but in unemployment we only consider the people who are ready and willing to work and calculates unemployment rate. usually if unemployment rate is high we assume that the labor participation rate is less and vice versa.
if interest rates are high people post pones their consuption now and deposits their money in banks and it leads to less demand or decrease demand for many of the durable goods.
.
Capitol Tech U Doctoral Presentation - April 2024.pptx
PART ONE- Briefly explain and illustrate how the unemployment rate and.docx
1. PART ONE. Briefly explain and illustrate how the unemployment rate and labor force
participation rate relate to the production possibilities frontier. Give
several examples of demographic, cultural, or personal decisions that
might change the LFPR.
PART TWO. Explain and illustrate how the interest rate effect supports the idea of a
negatively sloped AD curve.
Solution
unemployment means there is no work for the people who are in need to work and ready to work
and express their willing to work, but labor participation rate says about how much per cent of
population is involved in the work process. in second process it considers the population as a
whole irrespective of their abilities and skills.
but in unemployment we only consider the people who are ready and willing to work and
calculates unemployment rate. usually if unemployment rate is high we assume that the labor
participation rate is less and vice versa.
if interest rates are high people post pones their consuption now and deposits their money in
banks and it leads to less demand or decrease demand for many of the durable goods.
