Worksheet UI - 4 Sample problems with answers and work shown Inflation Real GDP Nominal GDP CPI PDF

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4 Sample problems with answers and work shown
Inflation
Real GDP
Nominal GDP
CPI...

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Exam Name___________________________________

SHORT ANSWER. Write the word or phrase that best com question.

1) Suppose 180,000 people are employed, 20,000 people are u population is 250,000, and 50,000 people are not in the labo unemployment rate.

2) Suppose 180,000 people are employed, 20,000 people are u are not in the labor force. Calculate the labor force particip

3) Fill in the missing values in the table of data collected in th December, 1996. The working- age population, employmen force are measured in thousands. Show your work. Working- age population Employment Unemployment Unemployment rate Labor force Labor force participation rate

Table 9- 12 Base Year Price

5.4% 135,113 67.0%

Table 9- 20

Year 1989 2015

Median Salary: New York Yankees $500,000 3,300,000

CPI (1982- 1984 = 1 124 238

Salaries in major league baseball have soared over the last 30 to 40 yea table above reports the consumer price index and the median nominal Source: USA Today Salaries Database, http://www.usatoday.com/sports/mlb

5) Refer to Table 9- 20. Calculate the real median salary of the 1982- 1984 dollars and 2015 dollars. Calculate the percenta salary of the Yankees from 1989 to 2015 in both nominal te

Answer Key Testname: UNTITLED3

1) The unemployment rate is calculated as: Number of unemployed × 100 Labor force The labor force is the sum of those employed plus the unempl people. Substituting this information into our equation, we get 20,000 × 100 200,000 which equals 10%.

2) The labor force participation rate is calculated as: Labor force × 100 Working-age population The labor force is the sum of those employed plus the unempl people. The working- age population is the sum of those in the 200,000 plus 50,000 which equals 250,000. Substituting this info 200,000 × 100 250,000 which equals 80%.

3) Working - age population Employment

201,661 127,817

Answer Key Testname: UNTITLED3

4) Total expenditures for 2001 = (10 × $1.00) + (15 × $5.00) + (8 × $ Total expenditures for 2017 = (10 × $1.50) + (15 × $7.00) + (8 × $ Total expenditures for 2018 = (10 × $1.75) + (15 × $6.75) + (8 × $

5)

The CPI for 2017 = [($144.00/$101.00) × 100] = 142.57. The CPI for 2018 = [($146.75/$101.00) × 100] = 145.30. So, the inflation rate for 2018 = [((145.30  142.57)/142.57) × 100)] Nominal median salary Real median salary = × 100. CPI Real median salary in 2015 dollars = Real median salary in 1982- 1984 dollars ×

Year 1989 2015

Median Salary: New York Yankees $500,000 3,300,000

CPI (1982- 1984 = 100) 124 238

In nominal terms, the median salary increased In real terms, the median salary increased

CPI in 20 CPI in 1982 Real Medi Salary (1982 - 198 dollars) $403,226 1,386,554

3,300,000 - 500 500,000

1,386,554 - 403,226 403,226...