(a) Diagram below shows a business cycle of country H over time. GOP growth (4 (1) Explain the possible type of unemploy

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A Diagram Below Shows A Business Cycle Of Country H Over Time Gop Growth 4 1 Explain The Possible Type Of Unemploy 1 (34.21 KiB) Viewed 34 times

(a) Diagram below shows a business cycle of country H over time. GOP growth (4 (1) Explain the possible type of unemployment between point A and point B with the aid of a labour market diagram. (5 marks) J (ii) Explain short run Philips curve with a diagram if the economy is moving from point C to point D. (5 marks) Employment Natural rate of unemployment long run Band 2.5% per annum Time (b) The following labour statistics refer to Country H in 2020. Category Working age population Labour force Calculate: (1) (ii) (iii) (iv) ECOECO 2021/2 MA 801 Number (millions) 7,256 6,248 5,762 5% Number of people who are not in the labour force Labour force participation rate Unemployment rate Cyclical unemployment rate (5 marks) Page 9 (c) Discuss the advantages and disadvantages of unemployment benefits. Do you agree that government increase spending on unemployment benefits during the outbreak of Covid-19? (5 marks) (d) Explain how income was re-distributed during inflation with examples of two winners and two losers of inflation. (5 marks)