Principles of Macroeconomics: Structural and Economic Problems of the Economy

This document discusses the structural and economic problems of the economy, including basic unemployment, current account deficit, indebtedness, and hypersensitivity of the total economic value. It also talks about the causes related to the labor force decline and quotes from the Bible related to the current scenario of the labor force.

Running head: PRINCIPLES OF MACROECONOMICS
Principles of macroeconomics
Name of the student
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PRINCIPLES OF MACROECONOMICS
Table of Contents
Answer to question 1:.....................................................................................................2
Answer to question 2......................................................................................................2
Answer to question no 3.................................................................................................3
References......................................................................................................................4

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PRINCIPLES OF MACROECONOMICS
Answer to question 1:
The structural and economic problems of the economy includes basic unemployment
along with the current account deficit, indebtedness and hypersensitivity of the total
economic value which is important do derive any key factors related to labour unemployment
(Duval ,Eris & Furceri, 2011) . Hence it economically affects the population and bring about
the changes affected towards employment. Hence there are basically two laws which are
regarded to this aspect. Firstly there has been low educational level in general. Hence if the
level of education increases the labour participation rate will also increase. Second factor is
low women labour participation rate. Hence it is seen from the collected data from the report
that due to this aspect the labour participation rate in 1988 was almost 57.5% and the same to
agriculture is valued at 46.1%. Which had decreased later on. Labour force participation rate
is a section of working population in age group of 16-64 years and currently seeking for
employment or undergoing for studies. However the age group of 64 years are not considered
as labour force (What is the Labor Force Participation Rate? ,2019).
Answer to question 2
In the response to this question there are five causes related to the labour force
decline. These are as follows-
The labour market is still now recovering from the economic downtown. Till now 12.8% of
new jobs are added with private sector which is 64 percent more than the previous record.
The unemployment rate has been fall down to 5.3 percent. After 7 years the value has
degraded more (Van Stolk et al., 2011). Life after Lisbon. Santa Monica: RAND
Corporation.).
.

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PRINCIPLES OF MACROECONOMICS
 While the labour market is down, the unemployment rate has recovered slowly. This
change indicates efficient market growth, including the labour force participation rate
and hence more work is to be done.
 The labour force participation predicts more recession and hence there is a change
implemented in the workforce limited (Van Stolk et al., 2011).
Answer to question no 3
In bible it o that God himself have worked for six days and rested on seventh. When
God had completed creation he was pleased. Hence the quotes from bible could be related to
the current scenario of labour force like-
Colossians 3:23: it is stated that whatever you do, do with heart as working for the Lord, not
for human masters.

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PRINCIPLES OF MACROECONOMICS
References
Duval, R., Eris, M., & Furceri, D. (2011). The Effects of Downturns on Labour Force
Participation. Paris: OECD Publishing.
Evans, R., Moore, A., & Rees, D. (2019). The Cyclical Behaviour of the Labour Force
Participation Rate in Australia. Australian Economic Review, 52(1), 94-106. doi:
10.1111/1467-8462.12308
Van Stolk, C., Hoorens, S., Brutscher, P., Hunt, P., & Tsang, F. (2011). Life after Lisbon.
Santa Monica: RAND Corporation.
What is the Labor Force Participation Rate?. (2019). Retrieved 18 July 2019, from
https://www.investopedia.com/terms/p/participationrate.asp