Suppose that in the year of 2020, Country A’s natural rate of unemployment was 5% and its actual unemployment rate was 7%. Further, the Country’s GDP in 2020 was $20,932 billion. Compute the Country’s potential GDP in 2020, using Okun's law
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Suppose that in the year of 2020, Country A’s natural rate of
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- The country of Calico has produced the following quantity of gauges and potatoes, with the price of each listed in dollar terms. a. Using 2000 as the base year, what is the growth rate of real GDP from 2000 to 2010? b. Based on the GDP deflator, what is the inflation rate from 2000 to 2010?Suppose the real GDP of an economy is $520 billion dollars and its unemployment rate is 8%.If the natural rate of unemployment is estimated at 5%, what is the value of the country’s potential GDP (LAS) in billions of dollars?Consider an economy that produces and consumes apples and oranges. In year 1, the price and quantity of the two goods is given by: pa = 100, po = 200, qa = 10, qo = 5. In the second year, prices and quantities are given by: pa = 120, po = 220, qa = 10, qo = 10. Find the growth rates of real and nominal GDP using the prices of the first year as the base.
- Assume a hypothetical economy that produces only one good – Peanut Butter. In year 1, the quantity produced is 4 packs and the price is Rs.400 per pack. In year 2, the quantity produced is 5 packs and the price is Rs.500 per pack. In year 3, the quantity produced is 6 packs and the price is Rs.600 per pack. Year 1 is the base year. What is the percentage growth rate of real GDP from year 2 to year 3? What is the inflation rate as measured by the GDP deflator from year 2 to year 3? In this one-good economy, how might you have answered parts (d) and (e) without first answering parts (b) and (c)?Suppose that in 1994 the total output in a single-good economy was 7,000 buckets of chicken. Also suppose that in 1994 each bucket of chicken was priced at $15. Finally, assume that in 2015 the price per bucket of chicken was $20 and that 23,000 buckets were produced. Instructions: In parts a-b, enter your answer rounded to 1 decimal place. In part c, enter your answers as a whole number. a. What is the GDP price index for 1994, using 2015 as the base year? b. By what percentage did the price level, as measured by this index, rise between 1994 and 2015? percent c. What were the amounts of real GDP in 1994 and 2015? In 1994, real GDP = $ In 2015, real GDP = $Which of the following statements are correct? Select one or more: a. To find GDP at constant prices we can use the CPI to deflate GDP at current prices b. Inflation is measured by calculating the cost of a given bundle of goods. c. The basket of goods used to calculate CPI inflation is fixed for long periods d. Some price indices adjust for the change in the quality of goods over time, as well as the change in prices.
- Nominal GDP in Nowhereland in 2002 and 2003 increased from $4 trillion to $4.8 trillion. Can you say that the production of goods and services in Nowhereland has increased between 2002 and 2003? Why or why not?Which of the following are true of an economy operating with a negative GDP gap? Check all that apply. a)A worker with a college degree is more likely to be unemployed than a worker without one. b)The suicide rate, crime, and political unrest may be higher than in an economy with a similar potential GDP and a lower unemployment rate. c)Actual real GDP is less than potential real GDP. d)A teenage worker is more likely to be unemployed than an older worker.Consider a country with a consumption of $485 billion, an investment of $175 billion, government purchases of $176 billion, government transfer payments of $24 billion, exports of $19 billion and imports of $40 billion for the year 2020. What is the country's total GDP for the year 2020? Write your answer in billions of dollars.
- Assume that you are told a country’s nominal GDP decreased from one year to the next. All of the following could have occurred, except one. Which one? Output increased and the price level decreased. Output decreased and the price level decreased. Output decreased and the price level remained constant. Output increased and the price level increased. Output remained constant and the price level decreased. Output decreased and the price level increased.Suppose that for the United States, Nominal GDP is $18 trillion for 2016. Assume further that the price of a market basket in 2018 is $3,200 whereas the same market basket in the year 2000 fetched a price of $2,000. If the year 2000 is the base year, what is Real GDP in 2016 (rounded to the nearest trillion)? A) $40.9 B)$28.8 C)$11.25 D)$7An economy has nominal GDP of $16,768 billion in year 1 and $17,419 billion in year 2. If real GDP is $15,710 billion in 2019 and $16,086 billion in year 2, by how much did the price level rise between year 1 and year 2? Give your answer in percentage terms, not decimals. Round your answer to two deciman place
