Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Macroeconomics Expert

Assignment: Economic Principles

Task 1: GDP, economic growth, unemployment and inflation

1. What is the gross domestic product of a country? What is meant by 'intermediate goods' and are they included in the measure of GDP? Give an example of a good that could be an intermediate good or a final good depending on the situation. Explain your answers.

- Maximum number of words 120

Suppose that the following table represents the goods and services produced in a very simple closed economy in 2016. Using the information in the table below to answer question 2.

Product

Quantity

Price

Steel

1000

$100

iPods

5000

$300

Cars

500

$25 000

Legal Services

100

$2000

2. Assume that steel is used as an input in the production of cars. Using that information, calculate the GDP for the year 2016? Explain your answer in words and show all calculations. Maximum number of words 120 plus calculations

For each of the following, indicate if the person would be classified as employed, unemployed, or not in the labour force and why:

3. a 45-year-old person who has been made redundant in their current position, is looking for work and is able to start immediately, but does not have the skills required by industry and needs retraining. Maximum number of words 40

4. a person who is working for 10 hours a week paid work in a supermarket while studying full time. The person is looking for full time work but cannot start until they finish their study in 3 months time. Maximum number of words 40

Refer to the following table and answer question 5.

 

Persons

Employed

8000

Unemployed

500

Not in the labour force

4000

5. Define and calculate the unemployment rate (show working). What is the labour force participation rate. Maximum number of words 40 plus calculations

6. Suppose an economy has only three goods, and the typical family purchases the amounts given in the following table. If 2005 is the base year, then, what is the CPI for 2015? Show all working out and explain your answer. Maximum number of words 40 + calculations.

Product

Quantity (2005)

Price (2005)

Price (2015)

Computers

2

$1700

$1200

Books

50

$25

$30

Burgers

150

$1.00

$2.00

Total

 

 

 

Task 2: Business Cycle and Aggregate Demand & Supply

1. Explain the three reasons the aggregate demand curve slopes downward. Maximum number of words 100

Explain how each of the following events in questions 2, 3 would affect the aggregate demand curve.

2. Consumers become more pessimistic about the future economic growth as unemployment rises. No graph required. Maximum number of words 50

3. Domestic prices increase, which decreases exports. No graph required. Maximum number of words 50

Read the following excerpt and answer the question 4

Struggling household sector weighs on GDP outlook

A struggling household sector - which is garnering the smallest slice of the nation's economic pie in decades - is casting renewed doubts over official predictions of a near-term rebound from a first-quarter dip in growth. Hampered by a series of headwinds in the opening months of the year, including bad weather that slowed both construction work and export shipments from northern Australia, annual growth faltered to the weakest pace since the 2009 downturn.

Citigroup analyst Joshua Williamson said the accounts showed the wages share of GDP was at the lowest level since 1964.......

"The flip side of the weak wages share is the highest profits share of GDP since December 2011," he said. "Hopefully the recent rebound in profits will feed into a stronger appetite for hiring and investment but so far the signs remain at best mixed."

Article: Struggling household sector weighs on GDP outlook by Jacob Greber.

4. Given the information in the above article, what components of GDP have been affected? How would this affect Aggregate Demand? Using the AD/AS framework, and assume that the economy was originally in the long run equilibrium, show what happens in both the short run and the long run. Including a graph in your answer- Maximum number of words 250.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M92796718

Have any Question?


Related Questions in Macroeconomics

Question principles of macroeconomicsworksheet on keynesian

Question: Principles of Macroeconomics Worksheet on Keynesian Demand Management The economy of Trickstoland is currently producing $450 billion of output, while enduring 12% cyclical unemployment. The natural rate of une ...

Question 1what is the current state of the us government

Question: 1. What is the current state of the U.S. government budget? 2. How do fiscal policy decisions made by the government impact the budget balance? 3. How do fiscal policy decisions made by the government impact th ...

Question to study a macroeconomy we calculate aggregate

Question: To study a macroeconomy we calculate aggregate quantities in real terms because? 1) it is then easier to take logarithms 2)it is the only way to reconcile the three approaches to measuring GDP 3) we want to get ...

Question - a study was conducted to determine how people

Question - A study was conducted to determine how people get jobs. Four hundred subjects were randomly selected and the following are the results: Job Source of Survey Respondents Frequency Newspaper want ads 69 Online s ...

Question a firm invents and obtains a patent for a new

Question: A firm invents and obtains a patent for a new strong, biodegradable fabric that is used to makegrocery bags. The demand function for these bags is Q = 800 - p. The firm's cost function isC(Q) = 100 + 100Q + 0.5 ...

Question you do not need to have seen the movie the

Question: You do not need to have seen the movie, the question is based on Carl Menger's Theory of the Good. In the movie, "Cast Away," Tom Hanks played the character Chuck Noland, who was stranded on a deserted island f ...

Question - a price-taking firm has the production function

Question - A price-taking firm has the production function Q = f(z 1 , z 2 ). The output price is P and the input price is w 1 and w 2 . There are two unusual things about this firm. First, rather than maximizing profit, ...

Discussion questionsquestion 1 what are the main reasons

Discussion Questions Question 1: What are the main reasons why Nigerians living in extreme poverty? Justify. ( 7) Question 2: Why GDP per capita wouldn't be an accurate measure of the welfare of the average Nigerian? Exp ...

Question 1 consider the following market for a public good

Question: 1) Consider the following market for a public good. Jules and Zooey each have a demand curve for the good given by P = 8 - 2Q. This public good can be supplied at a constant price MC=$8 (a) If Jules and Zooey a ...

Question suppose you are the chief executive officer of a

Question: Suppose you are the chief executive officer of a small pharmaceutical company that manufactures generic aspirin. You want the company to maximise its profits. You can sell as many aspirins as you make at the pr ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As