Question 7: (a) Diagram below shows a business cycle of country H over time. GDP growth (%) 2.5 0 A B D Actual outout Lo

[answerhappygod]

Question 7 A Diagram Below Shows A Business Cycle Of Country H Over Time Gdp Growth 2 5 0 A B D Actual Outout Lo 1 (72.36 KiB) Viewed 35 times

Question 7: (a) Diagram below shows a business cycle of country H over time. GDP growth (%) 2.5 0 A B D Actual outout Long-run trend 2.5% per annum Time (years) (i) Explain the possible type of unemployment between point A and point B with the aid of a labour market diagram. (5 marks) (ii) Explain short run Philips curve with a diagram if the economy is moving from point C to point D. (5 marks) (b) The following labour statistics refer to Country H in 2020. Category Working age population Labour force Employment Natural rate of unemployment Number (millions) 7,256 6,248 5,762 5% Calculate: (i) Number of people who are not in the labour force (ii) Labour force participation rate (iii) Unemployment rate (iv) Cyclical unemployment rate (5 marks)