Economics Paper

Chapter 15, Question 11.

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Year GDP C I G X-M C(%) I(%) G(%) X-m(%)

1965 719.1 443.8 118.2 151.5 5.6 61.72 16.44 21.07 .78

1975 1638.3 1034.4 230.2 357.7 16 63.14 14.05 21.83 .98

1985 4220.3 2720.3 736.2 879 -115.2 64.46 17.44 20.83 -2.73

1995 7397.7 4975.8 1144 1369.2 -91.4 67.26 15.46 18.51 -1.24

2005 12455.8 8742.4 2057.4 2372.8 -716.7 70.19 16.52 19.05 -5.75

A. The component of GDP that is the most stable is the consumption.

B. The most volatile as a percent of GDP is net exports.

C. Ignoring net exports, the component that has grown the fastest as percent of GDP since 1965 is consumption.

Chapter 16, Question 11

As the economy is in a bad situation right now and with the world as a whole is in somewhat of a total recession and some of us trying to recover from recession I will give my opinion on one of the reason for the recession we are in, that being unemployment. I will explain three different types of unemployment which is frictional, structural and cyclical unemployment. I will also try to give some types of government programs that could help combat each type of unemployment.

One type of unemployment is frictional unemployment. Frictional unemployment is defined as natural unemployment that involves people that may be in transition between jobs where they may have quit one job to get ready to take on a new job, graduating students or can be people that are re-entering the workforce from not working in a while. Some government programs that could help with easing frictional unemployment is offering job sites that give information about open jobs, more employment training facilities, and some thing most single mothers that want to get back to work but hard cause its not easy to find, a day care center for those that are trying to work or re-enter the workforce.

Another form of unemployment is called structural...