Macroeconomics Exam 1 Review PDF

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Summary

This is a review/practice problems correlating to the first three chapters and exam 1 from macroeconomics. The questions are very similar to the actual exam questions! I studied this review a lot and got a 100 on the actual exam....

Description

Macroeconomics+ Spring+2018+ Exam+1+review+Group+Assignment+ + GDP+ Consider)the)following)data)that)gives)the)quantity)produced)and)unit)price)for)three)different)goods) across)two)different)years)to)answer)the)questions:)Assume)that)the)base)year)is)2012.+

Good

2012 Price

2012 Quantity

2013 Price

2013 Quantity

A

$2

250

$3

200

B

$3

300

$2

400

C

$4

400

$5

500

+ 1. 2. 3. 4. 5. 6. 7. 8.

What+is+Nominal+GDP+for+2012?+ What+is+Real+GDP+for+2012?+ What+is+Nominal+GDP+for+2013+ What+is+Real+GDP+for+2013+ What+is+GDP+deflator+for+2012+ What+is+GDP+deflator+for+2013+ Calculate+the+inflation+rate+for+2013+based+on+the+GDP+deflator+ Explain+what+the+difference+is+between+the+GDP+deflator+and+CPI+is.++

+ + Unemployment+ + You+are+given+the+following+statistics+about+the+economy:+ Relevant+population:+348+million+ Employed:+228+million+ Unemployed:+19+million+ Answer+the+following+questions+to+one+decimal+point:+ 1. What+is+the+unemployment+rate?+ 2. What+is+the+labor+force?+ 3. What+is+the+labor+force+participation+rate?+ + What+would+one+expect+to+happen+to+the+labor+force+participation+rate+if+the+following+situations+ occurred?+ 4. + A+large+percentage+of+the+workforce+retires.+

5. + The+government+begins+to+subsidize+current+workers+who+go+back+to+school+full-time+to+attain+an+ advanced+degree.+ 6. + The+government+offers+a+transfer+payment+to+discouraged+workers+and+to+unemployed+workers.+

+ + Inflation+ + Using+the+table+below,+compute+the+consumer+price+index+(CPI)+in+2007+using+2006+as+the+base+year.+ Show+all+your+work.+

2006

+

Total Expenditure

2007

Good

Quantity Price

Price

Bagels

100

$1.00

$1.50

Shoes

10

$45.00

$50.00

DVDs

20

$10.00

$12.00

Total Expenditure...