Hello, and thanks for your question.
2. Labor force = 500 - (120 + 150) = 230
Official unemployment rate (unemployed / labor force) = (23 / 230) = 10%
3. GDP gap = (9% - 5%) x 2 = 8%
Forgone output estimated at (8% of $500 billion) = $40 billion
4. (a) This year's rate of inflation = (121 - 110) / 110 = 10%
(b) This year's rate of inflation = (108 - 110) / 110 = -1.82%
(c) A negative rate of inflation is referred to as "deflation"
6. (a) Real income % increase (approx.) = (5.3% - 3.8%) = 1.5%
(b) Rate of inflation (approx.) = (2.8% - 1.1%) = 1.7%
Hope this helps!
You can ask the questions at http://www.justanswer.com/homework/expert-chrism/.
advanced analysis Assume that the consumption schedule for a private open economy is such that consumption C = 50 + 0.8Y. Assume further that planned investment Ig and net exports Xn are independent of the level of real GDP and constant at Ig = 30 and Xn = 10. Recall also that, in equilibrium, the real output produced (Y) is equal to aggregate expenditures: Y = C + Ig+ Xn
a. Calculate the equilibrium level of income or real GDP for this economy.
b. What happens to equilibrium Y if Ig changes to 10? What does this outcome reveal about the size of the multiplier?
2. Answer the following questions on the basis of the three sets of data for the country of North Vaudeville:
a. Which set of data illustrates aggregate supply in the immediate short-run in North Vaudeville? The short run? The long run?
b. Assuming no change in hours of work, if real output per hour of work increases by 10 percent, what will be the new levels of real GDP in the right column of A? Does the new data reflect an increase in aggregate supply or does it indicate a decrease in aggregate supply?
3. Suppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown at the top left of the next page.
Price level real GDP price level real GDP price level real GDP
110 275 100 200 110 225
100 250 100 225 100 225
95 225 100 250 95 225
90 200 100 275 90 225
Amt of realGDPdemand in Billions (Price Index) amt of GDP supplied Billions
$100 300 $450
200 250 400
300 200 300
400 150 200
500 100 100
a. Use the data above to graph the aggregate demand and aggregate supply curves. What is the equilibrium price level and the equilibrium level of real output in this hypothetical economy? Is the equilibrium real output also necessarily the full-employment real output?
b. If the price level in this economy is 150, will quantity demanded equal, exceed, or fall short of quantity supplied? By what amount? If the price level is 250, will quantity demanded equal, exceed, or fall short of quantity supplied? By what amount?
c. Suppose that buyers desire to purchase $200 billion of extra real output at each price level. Sketch in the new aggregate demand curve as AD1. What is the new equilibrium price level and level of real output?
I'm sorry, but I won't be able to help with these questions; I'm not familiar with graphing the aggregate demand and aggregate supply curves. I would suggest that you make a new post of these, maybe one for #2 and one for #3. Good luck with these!