Question
Table 1: Consider the following table that contains key macroeconomic data for Country G: Economic Data 2019 2020 Working Age Population (WAP) (in millions) 43.33
Table 1: Consider the following table that contains key macroeconomic data for Country G:
Economic Data | 2019 | 2020 | |
Working Age Population (WAP) (in millions) | 43.33 | 42.97 | |
Employed Persons (E ) | 27.5 | 26.2 | |
Unemployed Persons (U) | 1.1 | 1.45 | |
Consumer Price Index (CPI) | 118 | 115 | |
Consumers Spending | $783 | $700 | |
Government Spending | $280 | $320 | |
Government Investment | $160 | $195 | |
Investment Spending | $175 | $150 | |
Export | $80 | $70 | |
Imports | $73 | $75 | |
Saving | $8 | $7.3 | |
Depreciation Expenses | $22 | $16 | |
Tax revenue | $580 | $544 | |
Transfer payments (TR) | $230 | $260 |
a) Calculate the labour force participation rate (LFPR%) andthe unemployment rate (UR%) in 2019 and 2020. (4 marks)
b) List the Key Macroeconomic Indicators (only) and comment on their performance based on your calculation in Q3 and Q4a) to justify which phase the economy is in.
(3 marks)
c) What type of fiscal policy is the government undertaking? How will this fiscal policy affect the Aggregate Demandcomponentsand affect the AD, SAS and/or LAS curve of the AD/AS Model? (4 marks)
d) Given the current economic condition, what type of monetary policy is the Central Bank going to undertake? How does the policy transmit to the economy? (4 marks)
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