Reference no: EM133269167

1. Suppose that in the year 2007 an orange blight occurs that killed 30% of the orange trees in Orangeland. The blight causes the country's economy to take a downturn. Oranges are in short supply which results in inflation. Answer the following questions in a short paragraph for each question.

Explain the relationship between the recession and inflation?

What type of inflation resulted from this situation?

Explain the impact of the orange blight on the unemployment rate?

How would you go about measuring the unemployment rate?

How would you measure the inflation resulting from economic change?

What would be the impact of the unemployment and inflation on the economy?

2. The scientists of Orangeland began feverishly working to find a cure for the orange tree blight. They developed a new type of tree. These trees can produce 50% more orange than the old trees. By 2009, the orange production was up by 50% over the 2006 production levels. It looked as if the economy was really booming.

Explain the possible impact on unemployment and the economy of this increase in production of oranges.

What would happen if there were not enough qualified workers to handle the increased production?