1. My friend Bill lost his job as a restaurant manager due to the Lockdowns last April. He has been receiving unemployment compensation for the last year. As of Jun 12, the compensation will come to an end. Bill is currently looking for a job. Assuming other people are in a similar position as Bill, what will happen to the following and why?(Be sure to thoroughly explain your reasoning)
2. The unemployment rate.
3. The labor force.
4. The labor force participation rate.
5. Today, June 10, 2021, the government has reported that the CPI in the United States has increased and has caused the inflation rate to reach 5%, which is the highest rate in 13 years. As a consumer are you concerned about the increase? What are the costs associated with inflation?
6. From March of 2020 to March of 2021, during the Lockdowns, what do you think has happened to household income? Why? How does this effect the loanable funds market? Illustrate the effect on a graph of the loanable funds market. Be sure to clearly label and explain the graph.
7. Which do you think gives a better gauge of the well-being of a country, nominal GDP or real GDP? And why?