What can you infer about the fall in unemployment rates over this period? Was it caused by a net gain in the number of jobs or by a large fall in the number of people seeking jobs?
Across all four regions there was both a net rise in the number of jobs and the number of people seeking jobs. But the number of jobs increased more than the labor force, and the unemployment rate fell.
The accompanying diagram shows the interest rate on one-year loans and inflation during 2001-2016 int the economy of Albernia. When would one-year loans have been especially attractive and why?
One-year loans in Albernia would have been especially attractive during the time inwhich the inflation rate exceeded the interest rate, corresponding to the years of 2004 and 2009. Whenever nominal interest rates are lower than inflation, borrowers are better off and lenders are worse off.