Why is there unemployment even when the economy is at “full employment”?

Answer the following questions:
1. Why is there unemployment even when
the economy is at “full employment”? What are some “costs of unemployment”?
2. Is the CPI a biased measure of the
inflation rate? Explain your answer.
3. 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).


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