Please give a detailed answer for each question.
Q (a) Compare the advantages and disadvantages of using the CPI, the PPI and the GDP-deflator as economic indicators.
b) With the help of a correctly labeled diagram, explain the main causes of inflation.
(c) Briefly explain some of the costs imposed by inflation and who are hurt by it.
d) Recommend three strategies for government to deal with inflation.
e) Explain why inflation is not all that bad and what part of it is good.
f) During times in the economy when nominal interest rates are high, while real rates are low, identify which groups "wins" and which groups "loses" with this situation. Explain why.
Q. a) Explain how the monthly survey of households by the Bureau of Labor Statistics categorizes the working age population and explain the three key labor market measures derived from these surveys.
b) Explain why the level of unemployment and its nature is important to government.
c) If the unemployment rate is less than the rate of full employment, explain the implications of this.
d) Suppose the number of unemployed workers in the country stays the same but the number of people living in the country increases, what do you think will happen to the unemployment rate? Explain your answer.
e) Which type of unemployment should government be most concerned with and why?