Can anybody work out this economics IB question?

a) full employment implies pumping more money into the economy to create more demand and need for labourers. full employment is above the natural rate of employment. theory suggests the difference between natural and full employment is frictional and temporary i.e. not structural.

pumping more money than needed can in fact raise prices in the long term after readjustments, whilst readjusting back to real employment rate. Note of Y output vs L labour model.

In the long run, money is neutral (money neutrality). In the short run, pumping more money into the economy can increase employment, but can be offset by long term increase in inflation. Note of Phillips Curve (inflation vs employment). Okun's law, if I remember correctly, it takes 2 percentage point increase to offset 1 percentage point of unemployment, but says nothing about long term effects. i.e. not a direct trade-off and you seem to need to pump a lot of money to increase employment, that may very likely be temporary.

Brown (2007?) notes of the redundancy of NAIRU; possible implications for lack of effectiveness in the model?

b) other issues: inflation, price level fluctuations, bringing in new business from abroad, education/innovation, interest rates, long term effects, etc.

support for unemployment being a priority:

-generates income to boost economy

-what agents in the economy prioritise on

- need tax

against for unemployment being a priority:

- what jobs should be kept? should economy be efficient enough to allocate jobs? are there need for such jobs?

- should there be certain jobs? are they needed? how many?

- how much money should be spent creating jobs? money well spent? better and more effectively spent elsewhere? are there better ways to go about this? e.g. transfer payments

- what jobs are sustainable? how would you know?

- other priorities more important?

- even if create employment, inflated prices would become a burden for the rest of the country and would standards of living be reduced as such? would offering employment at cost of increasing cost be worth it for new workers?

if employment becomes priority:

cost of maintenance of such management system

cost of changing existing system

how to go about it

how to manage self employment?

If none of this is clear, feel free to message me about it. By the way, you may want to let me know what at level you are studying. At the moment, I am presuming you're studying at bachelor's degree level.

Hope this helps