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Macroeconomics 10th Edition by William McEachern
Edition 10ISBN: 978-1133188131Macroeconomics 10th Edition by William McEachern
Edition 10ISBN: 978-1133188131 Exercise 1
UNDERSTANDING GRAPHS Look at Exhibit 6 and answer the following questions:
a. In what year (approximately) was the unemployment rate the highest? In what year was it the lowest?
b. In what decade, on average, was the unemployment rate highest? In what decade was it lowest?
c. Between 1950 and 1980, did the unemployment rate generally increase, decrease, or remain about the same?
a. In what year (approximately) was the unemployment rate the highest? In what year was it the lowest?
b. In what decade, on average, was the unemployment rate highest? In what decade was it lowest?
c. Between 1950 and 1980, did the unemployment rate generally increase, decrease, or remain about the same?
Explanation
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a.Highest unemployment:
It can be observed from the unemployment graph that the trend of unemployment rate reached to a highest peak of 26 percent in the year 1935. Hence, the unemployment rate in this year was highest.
The unemployment rate reached to 1 percent in the year 1942 , which is the lowest at bottom of this graph. Hence, the unemployment rate in this year was lowest.
B.Low and high unemployment decade:
In the end of the year 1920, unemployment rate started growing in an upward trend and reached to a highest level of 26 percent in 1935. Moreover, the unemployment rate falls below 2 percent after 1940. Hence, in the decade 1940 to 1950, the U.S. economy experienced high unemployment rate.
The unemployment rate reduced to below 1 percent after 1940, and it remained low till 1950. Hence, in the decade 1940 to 1950, the U.S. economy registered low unemployment rate.
C.Stable unemployment rate:
During the period 1950 to 1980, there is no much variation in the unemployment rate; hence, it can be concluded that during this decade, the unemployment rate was stable.
It can be observed from the unemployment graph that the trend of unemployment rate reached to a highest peak of 26 percent in the year 1935. Hence, the unemployment rate in this year was highest.
The unemployment rate reached to 1 percent in the year 1942 , which is the lowest at bottom of this graph. Hence, the unemployment rate in this year was lowest.
B.Low and high unemployment decade:
In the end of the year 1920, unemployment rate started growing in an upward trend and reached to a highest level of 26 percent in 1935. Moreover, the unemployment rate falls below 2 percent after 1940. Hence, in the decade 1940 to 1950, the U.S. economy experienced high unemployment rate.
The unemployment rate reduced to below 1 percent after 1940, and it remained low till 1950. Hence, in the decade 1940 to 1950, the U.S. economy registered low unemployment rate.
C.Stable unemployment rate:
During the period 1950 to 1980, there is no much variation in the unemployment rate; hence, it can be concluded that during this decade, the unemployment rate was stable.
Macroeconomics 10th Edition by William McEachern
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