Assignment: PRINCIPLES OF MACROECONOMICS
Question 1
A. Define and explain unemployment (10 points)
|
|
2014
|
2015
|
|
Population
|
224
|
227
|
|
Adult Population
|
168
|
170
|
|
#Unemployed
|
7
|
8
|
|
# Employed
|
105
|
104
|
B. From the given data above calculate and explain unemployment rates for 2014 and 2015(10 points)
Given the national income(NI) data below(All figures are in billions of dollars).
C. Compute National Income (NI)(10 points)
National Income data
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AMOUNT
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|
Personal consumption
|
$9,269
|
|
Compensation of Employees (Wages and salaries)
|
$7,489
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|
Gross private Domestic Investment
|
$2,212
|
|
Government purchases of goods and services
|
$2,527
|
|
Corporate profits
|
$1,616
|
|
Depreciation
|
$1,576
|
|
Exports
|
$1,466
|
|
Imports
|
$2,229
|
|
Proprietors' income
|
$1,015
|
|
Sales taxes
|
$913
|
|
Interest
|
$509
|
|
Rent
|
$77
|
|
Miscellaneous
|
$47
|
|
Statistical Discrepancy
|
$3
|
Inflation data
|
Year
|
Price of Books $
|
Quantity of Books
|
Price of Pencils $
|
Quantity of Pencils
|
Price of Pens $
|
Quantity of Pens
|
|
2011
|
$50
|
10
|
1.00
|
100
|
$5
|
100
|
|
2012
|
$50
|
12
|
1.00
|
200
|
$10
|
50
|
|
2013
|
$60
|
12
|
1.50
|
250
|
$20
|
20
|
The Inflation data above shows the prices and the quantities consumed in a college bookstore. Using 2011 as the base year
D. Calculate the inflation rate between 2012 and 2013 using the CPI approach.
Calculate inflation using the GDP deflator index and explain why consumer price index (CPI) overstates inflation when compared to inflation rate determined by using GDP deflator.
Question 2.
Using data from Bureau of Labor Statistics (BLS) Tables 2 and 3 in the months of August
2015 Seasonally Adjusted, compare and contrast Labor force participation rates (LFPR)
of four demographic groups-Whites, African -American, Asian and Hispanic.
Evaluate and discuss the differences in their LFPR.
Question 3
Different societies view unemployment differently. Some view it as asocial ill and others as an economic problem. In 250 words discuss how unemployment is viewed in your culture. Compare and contrast unemployment remedies of your culture with that of any other culture. Cite your work.