Production Unemployment and Inflation

Submit a 4- to 5-page paper that addresses the following questions. Be sure to use references within the paper to support your answers.
Why is there unemployment even when the economy is at “full employment”? What are some “costs of unemployment”?
Is the CPI a biased measure of the inflation rate? Explain your answer.
Explain how some government tax revenue and spending can depend on the state of the economy.
Explain some limitations of using GDP as an indicator of standard of living (be sure to do some research on your own to find any alternative measures).
Assignment Expectations
Use information from the modular background readings as well as any good quality resource you can find. Make sure you cite all resources you use and provide a reference list at the end of your paper.
Length: 4 to 5 typed and double-spaced pages.
In addition to the overall quality, depth, grammar, and organization of the paper, the following will, in particular, be assessed:
The level of your understanding of the key concepts of the major macroeconomic indicators.
Some in-text references to modular background readings (APA formatting encouraged).
Upload your assignment to the Case 1 dropbox when completed.

You must proofread your paper. But do not strictly rely on your computer’s spell-checker and grammar-checker; failure to do so indicates a lack of effort on your part and you can expect your grade to suffer accordingly. Papers with numerous misspelled words and grammatical mistakes will be penalized. Read over your paper – in silence and then aloud – before handing it in and make corrections as necessary. Often it is advantageous to have a friend proofread your paper for obvious errors. Handwritten corrections are preferable to uncorrected mistakes.

Use a standard 10 to 12 point (10 to 12 characters per inch) typeface. Smaller or compressed type and papers with small margins or single-spacing are hard to read. It is better to let your essay run over the recommended number of pages than to try to compress it into fewer pages.

Likewise, large type, large margins, large indentations, triple-spacing, increased leading (space between lines), increased kerning (space between letters), and any other such attempts at “padding” to increase the length of a paper are unacceptable, wasteful of trees, and will not fool your professor.

The paper must be neatly formatted, double-spaced with a one-inch margin on the top, bottom, and sides of each page. When submitting hard copy, be sure to use white paper and print out using dark ink. If it is hard to read your essay, it will also be hard to follow your argument