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According to Real Business Cycle and Neo-Keynesian Theory, unemployment is considered a cyclical variable, meaning it fluctuates in-sync with economic conditions. Therefore, a recession, being a decline in economic production, results in a decline in employment.
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What is the definition of an economic recession?
An economic recession is a slowdown in economic activity characterized by less consumer spending and often also by higher unemployment. Generally accepted indicators of a recession are usually a decline of Gross Domestic Product for two consecutive quarters and a sudden increase by 2 percent or more in the unemployment rate. However, since it takes a significant time to compile and verify the economic data, a recession may be well underway or even over when government agencies officially declare it.
If the inflation rate is higher than the GDP rate is there a recession?
The US govt. classifies a recession as 2 back to back quarters of negative GDP growth.
If the government increases unemployment benefits then the labor demand curve shifts leftward?
In this situation, the government has increased unemployment benefits. This means that workers are less interested in finding another job right away. Therefore, it is not the demand curve that would shift. Instead the labor supply curve would shift to the left because less unemployed people are willing to get a job.This principle shows why unemployment is higher in countries that offer more lenient unemployment benefits. For example, more countries in Europe have much more lenient unemployment benefits that the United States. That is why, normally, the United States has a lower unemployment rate.I say "normally" because of the present situation in the United States, where right now, unemployment is at 9.7%(on 3/7/2010). This is not the usual unemployment in the U.S. and is a result of the recession that began in 2008.
What is the meaning of the term boom?
Answer:Boom is the period that follows recovery phase in a standard economic cycle.A boom is characterized by an economy working at full or near-full capacity, strong consumer demand, low rate of unemployment, and a rising stock market, usually accompanied by rapidly increasing consumer prices (inflation).It means simply prosperity in economics.Refer to link below for more details.
What happened to the economy during stagflation?
Higher rates of inflation, decrease in business productivity, high unemployment
What is the definition of an economic recession?
An economic recession is a slowdown in economic activity characterized by less consumer spending and often also by higher unemployment. Generally accepted indicators of a recession are usually a decline of Gross Domestic Product for two consecutive quarters and a sudden increase by 2 percent or more in the unemployment rate. However, since it takes a significant time to compile and verify the economic data, a recession may be well underway or even over when government agencies officially declare it.
How does the current recession affected both general electric and General Motors?
the current recession effects these companies due to the lower demand for vehicles and that the higher taxes, and unemployment rate cause consumers to stop buying new items and fix the ones they have. so more and more companies are not selling as much and losing thousands of profits and intern losing there companies.
If the inflation rate is higher than the GDP rate is there a recession?
The US govt. classifies a recession as 2 back to back quarters of negative GDP growth.
Why do states pay different unemployment rates?
States pay different unemployment rates because each state has a different standard of living. More expensive states (i.e. California) typically pay higher unemployment because the minimum wage is higher and there is a higher cost of living.
How does a low unemployment rate affect a nation's economy?
The nation has a higher number of productive resources when the unemployment rate is low.
What is the importance of the unemployment rate in Illinois and the US?
High unemployment generally leads to higher crime and more defaults on home loans.
I reside in Ohio but worked in WV. Can I apply for unemployment in Ohio because the benefits are higher?
You will need to apply for unemployment in the state that you were employed.
If the government increases unemployment benefits then the labor demand curve shifts leftward?
In this situation, the government has increased unemployment benefits. This means that workers are less interested in finding another job right away. Therefore, it is not the demand curve that would shift. Instead the labor supply curve would shift to the left because less unemployed people are willing to get a job.This principle shows why unemployment is higher in countries that offer more lenient unemployment benefits. For example, more countries in Europe have much more lenient unemployment benefits that the United States. That is why, normally, the United States has a lower unemployment rate.I say "normally" because of the present situation in the United States, where right now, unemployment is at 9.7%(on 3/7/2010). This is not the usual unemployment in the U.S. and is a result of the recession that began in 2008.
What does double-bar graph mean?
You use 2 colors for the bars so you can compare things. Maybe one color for male unemployment, and one color for female over several years. You can look to se trends for increasing and decreasing unemployment and you can see which consistently has a higher unemployment or if one sex had higher unemployment then maybe it switched to the other.
What is the meaning of the term boom?
Answer:Boom is the period that follows recovery phase in a standard economic cycle.A boom is characterized by an economy working at full or near-full capacity, strong consumer demand, low rate of unemployment, and a rising stock market, usually accompanied by rapidly increasing consumer prices (inflation).It means simply prosperity in economics.Refer to link below for more details.
Can you move to another state with higher unemployment compensation and collect from that state?
No. You can only collect from the state that your employer paid his unemployment taxes to, the "liable" state.
What happened to the economy during stagflation?
Higher rates of inflation, decrease in business productivity, high unemployment
