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A spike in unemployment rate - the largest in more than 2-decades - increased new concerns Friday that a weak labor outlook, high oil prices and continuing woes in housing and credit markets are leading the United States economy into a painful recession.
The government said Friday that the unemployment rate soared to 5.5 percent in May from 5 percent in April - much higher than economists had forecast.
The surge marked the biggest one-month jump in unemployment since February 1986, and the 5.5 percent rate is the highest level seen since October 2004. Unemployment is now a full percentage point higher than it was a year ago.....
CNN,June 6,2008
a) How does the unemployment rate in May compare to the unemployment rate during the past few recessions?
b) Why might the unemployment rate tend to actually underestimate the unemployment problem, especially during a recession?
c) How does the unemployment rate in May compare to the estimated natural unemployment rate? What does this imply about the relationship between real GDP and potential GDP at this time?
Illustrate what objectives are pursued by members of the OPEC cartel. Discuss what actions they can take to achieve these objectives.
California Electric has a cost of equity capital of 16%. The company has consistently been authorized a return on equity capital below this expenses.
Suppose that the car manufacturer allows the car dealer to return all unsold cars at the end of a recessionary year. What is the car dealer's profit in a growth year and in a recession? What is their expected profit?
Explain how have these people changed monetary strategy, fiscal policy also laws that govern businesses since the collapse of the economy.
the grocery store next door provide an offers to double coupon night for Senior Citizens.
Illustrate what are the major performance goals that we set for the economy, and how do we measure the performance?
Explain how an increase in interest rates initiated by the Federal Reserve affects:
Explain why would this be described as a Prisoner's Dilemma game.
List the basic characteristics of pure monopoly, monopolistic and oligopoly competition. Under which of these market classifications does each of following most accurately fit?
Illustrate what special problems are faced by eastern european economies as they make the transition from central planning to competitive markets.
Ajax Cleaning Products is a medium sized company operating in an industry dominated through one very large firm-Tile King. Ajax manufacture a multi-headed tunnel wall scrubber that is similar to a model produced by Tile King.
Illustrate what are the three recommendations you would make to him to improve the overall effectiveness of the economy.
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