Questions from Macroeconomics

Q: (a) Compute real GDP for 2010 using average prices of

(a) Compute real GDP for 2010 using average prices of 2000 as the base year. (On the inside covers of this book you’ll find data for GDP and the GDP “price deflator” used to measure inflation.) (b...

Q: According to the data in Table 5.3, what is

According to the data in Table 5.3, what is (a) Real GDP in 2008, at prices of 2007? (b) Real GDP in 2007, at prices of 2008? Table 5.3:

Q: On the accompanying graph, illustrate both the unemployment rate and the

On the accompanying graph, illustrate both the unemployment rate and the real GDP growth rate for each year. (The data required for this exercise are on the inside cover of this book.) (a) In how many...

Q: (a) What was the unemployment rate in 2010?

(a) What was the unemployment rate in 2010? (b) How many jobs were needed to bring the unemployment rate down to the 5 percent full-employment threshold? (c) Using Okun’s Law, how more much would tota...

Q: According to Okun’s Law, how much output (real GDP)

According to Okun’s Law, how much output (real GDP) was lost in 2010 when the nation’s unemployment rate increased from 9.3 percent to 9.6 percent?

Q: Which taxes hit the poor hardest—those of local, state

Which taxes hit the poor hardest—those of local, state, or federal governments?

Q: Suppose the following data describe a nation’s population: /

Suppose the following data describe a nation’s population: (a) How many people are unemployed in each year? (b) How many people are employed in each year? (c) Compute the employme...

Q: Based on the data in the previous problem, what happens (“

Based on the data in the previous problem, what happens (“up” or “down”) to each of the following numbers in Year 2 when 1 milli...

Q: Suppose you’ll have an annual nominal income of $20,000

Suppose you’ll have an annual nominal income of $20,000 for each of the next three years, and the inflation rate is 5 percent per year. (a) Find the real value of your $20,000 salary for each of the n...

Q: Suppose you borrow $100 of principal that must be repaid at

Suppose you borrow $100 of principal that must be repaid at the end of two years, along with interest of 5 percent a year. If the annual inflation rate turns out to be 10 percent, (a) What is the real...