Answer to Question #114308 in Macroeconomics for Kg

Question

A. To be counted into the pool of unemployment, a person must be
1. any age above 15 years
2. discouraged work seeker
3. economically active
4. hired and looking for a second job
B. Unemployment can decrease if
1. there is an economic recession
2. education system improves
3. investment spending increase
4. aggregate demand decrease
C.The original Phillip curve
1. indicates the inverse relationship between the inflation rate and the unemployment rate
2. Illustrate the positive relationship between the inflation rate and the unemployment rate
3. shows the phenomenon stagflation
4. shifts to the right when aggregate demand increases

Answer 1

A. 3. economically active

B. 3. investment spending increase

C. 1. indicates the inverse relationship between the inflation rate and the unemployment rate.