11 May WHAT IS THE NATURAL RATE OF UNEMPLOYMENT?
Principle of Macroeconomics
[MUST SHOW CALCULATIONS. If you use Excel to calculate then copy paste the excel part.]
1.Use the following diagram to answer the next questions.
a.Which combination of Consumption goods and Capital Goods (i.e. which point)is impossible to achieve? (2 points)
b. Considering only points on the frontier, at which point the economy will experience the least amount of economic growth over time (ceteris paribus)? And why? (2 + 2 points)
c. Which combination of Consumption goods and Capital Goods (i.e. which point) is most inefficient in terms of production? (2 points)
2.Using supply and demand curves, show the effect of each of the following events on the market.
a. The midwestern United States (a major corn-producing area) suffers a drought. What will happen in the corn market? (4 points)
b. During last few decades the demand for Van Gogh’s paintings skyrocketed meanwhile the supply of his paintings remains constant (i.e. vertical supply curve). What will happen in the paintings market for Van Gogh? (4 points)
3. As a group, who is most likely to have unemployment rates that are less than national average? (2 points)
4. In November 2015 the labor force in Hamden, Connecticut, was 14,800. There were 14,480 persons employed. What was the local unemployment rate in Hamden? (Show calculations)
5.What is the natural rate of unemployment? (4 points)
6.If the nominal interest rate is 9 percent and real interest rate is – 1 percent, then what is the inflation rate? (Show calculations) (4 points)
7. What are the twomajor differences between the CPI and the GDP deflator index? (4 points)
8. The economy is experiencing 50 percent inflation per month.If a donut costs $1.50 today then how much it will cost next month. (Show calculations) (2 points)
9. The nominal GDP of Bangladesh is $650 billion and the GDP deflator at same year is 160. What will be the real GDP? (4 points) (Show calculations)(4 points)
10.Go to BLS or FRED website, find the CPI at year 2015and 2014. Then calculate the inflation rate in 2015? (4 points) (Show calculations)(2 + 4points)
CPI 2015:
CPI 2014:
Inflation rate (2015) =
11. In United States, the private consumption is $7,900 billion, investment spending is $1315 billion, total government purchase is $700 billion and net export is equal to – 625 billion. Calculate the GDP for United States. (Show calculations) (4 points)
12. We are calculating the economic growth of Bangladesh. The Real GDP of year 2014 and 2015 was $690 billion and $735 billion. Also the population was 155 million and 160 million respectively in 2014 and 2015.
Calculate the real GDP per capita for Bangladesh for the years 2014 and 2015. (2 points)
Also calculate the economic growth between 2014 and 2015. (Show calculations) (4 points)
13. Calculate the Price index for the years 2012, 2013 and 2015. Also, calculate the inflation rate for the years 2014 and 2015 using the information below. (Show calculations)(16 points)
Year Price of Fish (10 lbs) Price of Ham(20 lbs)
2013 1.60 per lbs 0.75 per lbs
2014 2.00 1.25
2015 2.30 1.50
Cost of Market Basket
2013
2014
2015
Consumer Price Index
2013
2014
2015
Inflation Rate
2014
2015
14.Calculate the percentage of the Real GDP components for 2013 in the table format below.(Show calculations) (8 points)
Billions of chained (2009) dollars Percentage of Real GDP Components
Real GDP 15,710.3
——xxxxxxx——
Consumption 10,699.7
Investment 2,556.2
Government Expenditure 2,894.5
Net Export – 420.4
15. Answer parts (a) through (e) using the information in Table Q#15.(Show calculations) (5 x 4 = 20)
Table Q#15
Population 4,000,000
Population (ages 16 and older) 2,000,000
Employed 1,450,000
Not in Labor Force 100,000
a. Calculate the number of workers in the labor force.
b. Calculate the number of unemployed workers.
c. Calculate the unemployment rate.
d. Calculate the labor-force participation rate.
e. Calculate the unemployment rate if 50,000 unemployed workers become “discouraged” and decideto stop looking for work?
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.