..Answer the following questions.,

1. You will be given an aggregate demand/aggregate supply schedule. You will be asked to do the following: a. Identify and name the three stages of the Aggregate Supply curve. b . Describe the effect that a shift along the curve will have on output, unemployment, and the price level. C. Describe demand-pull inflation. Describe cost-push inflation. e. Describe the "ratchet effect." 2. This question deals with business cycles. You will be asked to label the phases of a business cycle and explain the following terms: a. peak b. recession C. trough d. recovery e. growth or "secular" trend 3. Unemployment is the focus of this question. You will be asked to do the following: a. Describe and give an example of frictional unemployment. b. Describe and give an example of structural unemployment. C. Describe and give an example of cyclical unemployment. d. Explain the cost of unemployment to the economy. Explain the cost of unemployment to society. 4. You will be asked to explain and differentiate between the following types of taxes and give an example of each: a Progressive taxes. b . Regressive taxes. C. Proportional taxes.3. To slow down transmissions of the viral disea 'lockdown" hence ordering business to shut and the citizens to adhere to limiting physical distancing, but leaving the timing of the lockdown to be decided by the two regional governments of Krona. Assume that both regions have roughly the same population size of 10 million citizens. Region 1 entered lockdown at the beginning of month 3, region 2 entered lockdown at the beginning of month 2. See Next Page The following table shows the cumulative infections and fatalities due to the viral disease over time and the time of the lockdown in each region at the end of each month. Month 1 Month 2 Month 3 Month 4 cases fatalities cases fatalities cases fatalities cases fatalities Region 1 100 3 5000 300 9000 540 15000 900 Region 2 100 5 2200 130 4500 270 5500 330 a) The minister for the economy argues that after both regions entered lockdown, in month 3 the number of cases in region 2 more than doubled, whereas the growth rate is lower in region 1 arguing that the lockdown was not effective in preventing the spread of the disease. Do you agree? Can you provide a better estimate using your knowledge of empirical methods introduced in the module? [word limit 250 words; 8 marks]. b) What kind of data would you prefer to have to estimate the full impact of the lockdowns on infections and fatalities? Explain how this would help to improve your estimate from the previous question. [word limit 200 words; 4 marks]. c) In response to the lockdown the economy in region 1 contracted by $1.1bn, and $1.114bn in region 2. What can we learn from these figures about the statistical value of life? [word limit 100 words; 3 marks]. d) Suppose a vaccine against the disease was available at the beginning of month 1 (and assume it works immediately by protecting the citizens from the disease). 60% of population require the vaccine to stop the disease from spreading. The vaccine is available for $20. Should the government introduce the vaccine? State any assumptions you implicitly make underlying your advice and briefly discuss the limitation of your advice. [word limit 250 words; 5 marks].23. According to class discussion and the textbook, economic growth is highest in countries where: A. There is political instability B. There are high taxes on top income earners C. There are incentives for investment in capital D. Growth rates in M outpace growth rates in Q by a factor of 10 E. There is a large and well developed infrastructure (roads, schools, telecommunications, etc.) 24. Someone is unemployed if: A. They are drawing unemployment benefits from the government B. They are not working and actively searching for work C. They are working for pay or profit D. They are not working E. They are on vacation 25. In class, which group did I refer to as a classic example of underemployed persons? A Single parents B. High school students C. Recent college graduates D. Retail and food service workers E. Individuals with advanced degrees (Master's and PhD's] 26. Suppose that as a result of the recession in 2008, Arthur loses his construction job. After several months of trying to find a job and being unsuccessful, Arthur gives up looking for work. He is then classified as a: A. Retired worker B. Discouraged worker C. Unemployed worker D. Underemployed worker E. Member of the civilian labor force 27. Inflation is defined as: A. An increase in the general prices of all goods and services that usually results from an increase in the money supply- B. A decrease in the purchasing power of money due to a depreciation of the U.5. dollar versus foreign currencies. C. A decrease in the general prices of all goods and services that usually results from a decrease in the money supply. D. An increase in the purchasing power of money that directly results from a decrease in the money supply- 28. If the Decatur Wal-Mart sold $20 million worth of goods in 2018 and sells $21 million worth of goods in 2019, does it automatically stand to reason that they sold more goods in 2019? A. There is not enough information to answer this question. B. Yes, they sold an additional $1 million worth of goods in 2018. C. Yes, they sold more goods in 2018 because 21 is more than 20. D. No, they could have sold the same number of goods if the average prices of all the goods sold rose by 5%.3. Which of the following cases will result in the largest decrease in equilibrium price? The largest change in equilibrium quantity? Verify your answers by drawing graphs. a. Demand is highly inelastic; there is a relatively large increase in supply. b. Demand is highly elastic; there is a relatively small increase in supply. c. Supply is highly inelastic; there is a relatively small decrease in demand. d. Supply is highly elastic and demand is very inelastic; there is a relatively large increase in supply. 4. Suppose that the inverse demand curve for a dinner-for-two special at a small local restaurant can be expressed as P = 4,900- 30?, where price is expressed in dollars and quantity in number of specials. What is the price elasticity of demand when 40 specials are purchased? Is the demand for specials elastic, unit elastic, or inelastic