Questions on Macro Economic Indicators and GDP

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GDP ANS=1 GDP refers to gross domestic product, which means measure of final goods and services produced within a country. Y=C+I+E+G where y=gross domestic product C = Consumer Spending I = Investment made by industry E = Excess of Exports over Imports G = Government Spending According to data given the Gross domestic product will be GDP=$1000+$200+$300+$150 GDP=$1650 ANS=2 If we are able to import less oil from the foreign countries and increase our domestic energy production that will definitely decrease our imports and excess of exports over imports will decrease that will eventually increase our GDP. Consumer price index ANS=1 If the consumer price index increases from 100 to 104 then the percentage increase is Increase= 104-100=3 3/100=0.03 percent ANS=2 If the consumer price index increases from 231 to 234 then the percentage was Increase=234-231=3 3/231=0.0129 Unemployment rate ANS=1 If the entire civilian labor force is 20000 people and the unemployed people is 2000 then the unemployment rate is=2000/20000*100 =10 percent ANS= 2 If the entire civilian labor force is 20000 people and the 2000 people are unemployed and 500 people have stopped working then the unemployment rate is Total labor force is= 20000-500=19500 Unemployment rate =2000/19500*100=10.25 percent Comparison of Consumer price index Consumer price index of Japan According to Federal reserve Bank of St Louis inflation in Japan is rising with slow speedand in the
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