Does the behaviour of the unemployment rate

Reference no: EM133261028

Case: Suppose you work as an economic analyst in a large research organisation. Unemployment is a key statistic that both government and large investors closely follow to determine how best to implement future economic policies and investment decisions. Go to FRED of the Federal Reserve Bank of St. Louis website and view the Harmonized Unemployment Rate: Total: All Persons for the European Union. Click on the max button, and a graph will show the unemployment rate in the European Union (EU) since 2000. Also using FRED find the Real Gross Domestic Product for European Union (28 countries) and plot the series from 2000.

Question 1: Plot the two series. Does the behaviour of the unemployment rate illustrate the principle of co-movement discussed in the chapter? Why or why not?

Question 2: Economic variables are sometimes divided into "leading indicators" and "lagging indicators." Leading indicators are variables that start to change before an economic expansion or contraction. Lagging indicators change only when an expansion or contraction is well underway. Based on the graph of the unemployment rate, is unemployment a leading or lagging indicator of recessions? Explain. How can we use this information when providing advice to a company that sells goods to consumers?

Reference no: EM133261028

Questions Cloud

Define mental models : Then describe how the shared mental models the associates adopted while working with Tony helped them maintain team efficacy when their supervisor quit.

Problem statement of the case : ECO 190 Ateneo de Manila University Problem statement of the case (This defines the perceived problem presented in the case and which is the subject

How justinian used art and architecture of church : Can someone explain to me from their own knowledge how Justinian used art and architecture of the church of San Vitale to express authority

Read the institute for healthcare improvements : Read the IHI Triple Aim Initiative page on the Institute for Healthcare Improvement's?(IHI) website, read Triple Aim for Populations.

Does the behaviour of the unemployment rate : ECONOMICS 132B University of the Fraser Valley Does the behaviour of the unemployment rate illustrate the principle of co-movement discussed in the chapter?

Provide an executive marketing plan report to management : BADM 535 University of the Cumberlands provide an executive marketing plan report to the management team.

How changes in the federal reserve monetary policy : Analyze how changes in the Federal Reserve's monetary policy affect at least 2 of the 4 components of GDP.

Would you propose any changes in the proposed offsets : ECON 1.421.123 Sky Tech Computer College, Would you propose any changes in the proposed offsets? What, if any, additional information would you want

Summarize these two examples and include one more example : MBA 545 Bryan University Summarize these 2 examples and include one more example A ticket purchased a month in advance can often be had for half the price

User Account

All Pages