Answer to Question #259908 in Macroeconomics for Deey

Question

) Prepare a table and line graph showing the unemployment and economic growth rate for Barbados and developed country Canada for the last 5 years. Examine the relationship observed between the two countries.  

b) Identify THREE public policies that can stimulate employment and facilitate economic growth in an economy. 

Use examples to clearly illustrate how EACH policy can stimulate employment and facilitate economic growth in your country. 

Answer 1

a

The unemployment rate is defined as that fraction of the labour force, which is unemployed. The given unemployment rate may reflect two different realities. It may reflect an active labour force or a stagnant labour market.

b

The unemployment rate for both countries has fallen from the year 2009 to 2018. The unemployment rate shows an upward trend in the first few years. Still, after reaching their maximum level, the unemployment rate for both the countries starts declining (a slight increase in the case of Barbados) and reaches their respective minimums.

c.

Hence, both countries have experienced economic growth as implied by the low level of unemployment rate from the respective initial level.