Exercises
Business Cycle, Unemployment and Inflation
Business Cycle, Unemployment and Inflation
Other than the variables suggested, could you come up with other indicators that also help identify the phases of business cycle? How? Briefly explain.
Skills required: understand the concept and extend it to the real-world economy
Related concepts:
Hong Kong government gave out consumption vouchers in 2021 to alleviate the economic recession. Explain, how the consumption voucher scheme could lead to inflation.
Skills required: understand the background information and analyze the real-world situation combined with economic concepts
The fifth wave of pandemic strikes Hong Kong and there is not enough doctors and nurses to take care of the patients. In order to relieve the situation, the Hong Kong government has decided to import healthcare workers from the mainland China. Discuss, how this policy affects the unemployment rate in Hong Kong.
Skills required: understand the background information and analyze the real-world situation combined with economic concepts