Answer Happy

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6) Assume the Japanese government experienced an increase in the unemployment rate in recent years due to an increase in the natural rate of unemployment and they have hired you to make suggestions to them to decrease the natural rate. Write a policy suggestion that may decrease the natural rate of unemployment in this country. 7) Assume in Turkey the Short Run Phillips Curve shifted up. What is the economic meaning of this development? 8) There are several arguments on the cause of structural unemployment? Which one do you think is more effective in creating unemployment in your country? Explain your answer. 9) According to most of the economists throughout 1960s, USA had decreased the unemployment through government policies below the natural rate, which in time affected the expectations and as a result had experienced a high level of inflation in 1970s. In the late 1970s and early 1980s on the other hand the unemployment had risen above the natural rate, which again in time affected the expectations and as result inflation had fallen back to low values. Show on a graph, the Phillips Curve behaved in the 1960s and early 1970s, and then on another graph how it had behaved in the late 1970s and early 1980s. (On each graph draw two Phillips Curves on showing the Phillips curve at the starting point of the period, one showing the Phillips Curve at the end.) 10) What is GDP deflator?