Suppose Jean Splicer, an investor, buys 300,000 of shares of stock in Suppose Jean Splicer, an investor, buys 300,000

Suppose Jean Splicer , an investor , buys 300,000 of shares of stock in a diversified bundle of Bio tech firms and exactly one year later sells those shares for 315,000 .

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The Economy cannot be considered fully employed unless the measured unemployment rate is below 1 %. Agree or disagree and explain your answer in a paragraph .

2A ) Why would you expect the inflation rate to accelerate if the actual unemployment rate declined to a level lower than the " full employment " unemployment rate and remained at that low level for a year or longer ? Explain your answer in a few sentences .

B ) Draw an AS / AD diagram illustrating your answer to part ( A ). Be sure to label all lines and axes in your diagram clearly .

3 ) A ) Suppose Jean Splicer , an investor , buys 300,000 of shares of stock in a diversified bundle of Biotech firms and exactly one year later sells those shares for 315,000 . Assume the value of the CPI at the date of Jean ' s purchase was 180 and rose by the ...