Assignment:
There are two parts to this written assignment. Consider each scenario and the questions that follow to complete each part.
Part I - Unemployment
Wanda works part time one hour a week baking cookies at Cookies R Us but is desperately seeking full-time work to support her 9 year old daughter Nina, who is in the 5th grade. Bobby was let go at his job as a bubble gum inspector for placing his gum under the table top at work; now he spends all his time watching game shows on TV. Jose used to be a type writer repair person for ACME Type Writer Repairs but has been out of work and unable to find work ever since ACME type writer repairs closed due to no one using typewriters. Nancy works forty hours a week feeding monkeys at the local zoo. Veronica quit her job as a drinking fountain attendant when she got her degree from clown school and has been looking for a job as a clown. Becky and Denny are whale tamers but are currently laid off and have been unable to find work because it is sunning season for whales and whales cannot be tamed each year during sunning season.
1. This week's lecture pages describe the different types of unemployment (frictional, seasonal, structural, cyclical and full). Describe each person in the above scenario in terms of the type of unemployment they fall under.
2. In the scenario above, what is the unemployment rate and how is it calculated?
Part II - Unemployment vs. Inflation
Using an Internet resource, such as the CIA World Fact Book or Trading Economics search for the current unemployment and inflation rates for the U.S., China, Canada and the United Kingdom.
1. According to this week's lecture, there are two types of inflation (demand pull and cost push). Which countries are experiencing a demand pull inflation? Which countries are experiencing a cost push inflation? You may need to complete additional research to determine the inflation type for each country.
2. What correlation, if any, exists between the unemployment and inflation rates of the above countries?