Answer to Question #146662 in Macroeconomics for Prince Chauke

Question

Q.1.8 Mr Brown has recently been retrenched. The firm he worked for had to retrench a number of staff due to the downturn in the economy. Mr Brown has not managed to find alternative employment. We can say he is _________________

unemployed.

(a) Structurally;

(b) Cyclically;

(c) Seasonally;

(d) Frictionally.

Q.1.9 If the CPI was 106 in 2013 and 116 in 2014, the inflation rate in 2014 was:

(a) 106%;

(b) 116%;

(c) 9.4%;

(d) 16%

Q.1.10 Strikes across a wide range of industries in South Africa in the first half of 2020

can be illustrated in the AD‐AS model as a:

(a) Leftward shift of the AD curve;

(b) Rightward shift of the AD curve;

(c) Leftward shift of the AS curve;

(d) Rightward shift of the AS curve.

Answer 1

Q.1.8. Structurally

Q.1.9 $\frac{(116-106)}{106}×100$ = $9.4$

Q.1.10 Leftward shift of the AS curve