eco 201 questions

  1. The following table shows the adult population (labor market data) for country Z.



Frictionally unemployed


Cyclically unemployed


Structurally unemployed


Not in the labor force


  1. Calculate the unemployment rate (don’t just put a but show all work)
  2. Calculate the labor force participation rate (don’t just put a but show all work)
  3. Does country Z have a natural rate of unemployment? Why?
  1. Discuss the costs associated with high inflation.
  2. Discuss the winners and losers of inflation.
  3. (a) What is the business cycle?

(b) Explain what is happening during each phase of the cycle with:

I. output,

II. employment

III. and inflation

Many have claimed that outsourcing by American companies is costing American jobs. However, companies claim that they cannot compete if they do not cut cost and one effective way of cutting cost, is to have some of your goods produced outside the U.S. Do you agree? Discuss some of the advantages and disadvantages of outsourcing. In you own opinion, and no less than 400 word.

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