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Write 300-500 words each, responding to the following questions. You will be graded on how well you follow these instructions!
Q1: Why does the nation’s unemployment rate understate the true level of joblessness in the United States? Explain by using complete technical definitions of the (1) non-institutional working-age population, (2) labor force, (3) employed, (4) unemployed, and (5) discouraged workers. Would a broader definition of unemployed have policy and ethical implications for our society?
Q2: The Federal Reserve has three basic options for conducting monetary policy: (1) open market purchases and sales, (2) changes in the Reserve Requirement, and (3) changes in the Discount Rate. Explain how these might be applied to fight the recession caused by pandemic.
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