Reference no: EM131935180

Assignment: PRINCIPLES OF MACROECONOMICS

Question 1

In a short (brief) paragraph using complete sentences, define unemployment and from the data below calculate and explain unemployment rates for 2014 and 2015(20 points)

	2014	2015
Population	224	227
Adult Population	168	170
#Unemployed	7	8
# Employed	105	104

Assessment Codes CT, VC, WC, EQS

Question 2A.

Given the national income accounts, (NI) data below(ALL figures are in billions of dollars) compute National Income using the Income Approach (10points)

National Income data	$ AMOUNT(in Billions)
Consumption	$9,269
Compensation of Employees (Wages and salaries)	$7,489
Investment	$2,212
Government spending	$2,527
Profits	$2,631
Exports	$1,466
Imports	$2,229
Interest	$509
Rent	$77

Inflation data

Year	Price of Books $	Quantity of Books	Price of Pencils $	Quantity of Pencils	Price of Pens $	Quantity of Pens
2011	$50	10	1.00	100	$5	100
2012	$50	12	1.00	200	$10	50
2013	$60	12	1.50	250	$20	20

The Inflation data above shows the prices and the quantities consumed in a college bookstore. Using 2011 as the base year

Question 2B.

Calculate the inflation rate between 2012 and 2013 using the CPI approach.

Calculate inflation using the GDP deflator index; explain why consumer price index (CPI) overstates inflation when compared to inflation rate determined by using GDP deflator.

Assessment Codes CT, WC, EQS

Question 2C.

Using data from Bureau of Labor Statistics (BLS) Tables 2 and 3 in the months of August 2015 Seasonally Adjusted, compare and contrast Labor force participation rates (LFPR)   of four demographic groups: Whites, African -American, Asian and Hispanic. Evaluate and discuss the differences in their LFPR(25 points)

Assessment Codes CT, WC, EQS

Question 3

Different societies view unemployment differently. Some view it as a social ill and others as an economic problem. For instance the USA unemployment insurance (UI) is used by the government to provide a safety net to those that have lost their jobs due to no fault of theirs. In 250 words, discuss, compare and contrast the unemployment of the USA culture with that of Singapore. Cite your work.(30 points)

Assessment Codes CT, WC, SR