Reference no: EM131451699

Assignment: PRINCIPLES OF MACROECONOMICS

Question 1

A. Define and explain unemployment (10 points)

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

B. From the given data above calculate and explain unemployment rates for 2014 and 2015(10 points)

Given the national income(NI) data below(All figures are in billions of dollars).

C. Compute National Income (NI)(10 points)

National Income data

	AMOUNT
Personal consumption	$9,269
Compensation of Employees (Wages and salaries)	$7,489
Gross private Domestic Investment	$2,212
Government purchases of goods and services	$2,527
Corporate profits	$1,616
Depreciation	$1,576
Exports	$1,466
Imports	$2,229
Proprietors' income	$1,015
Sales taxes	$913
Interest	$509
Rent	$77
Miscellaneous	$47
Statistical Discrepancy	$3

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

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

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

Question 2.
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.

Question 3

Different societies view unemployment differently. Some view it as asocial ill and others as an economic problem. In 250 words discuss how unemployment is viewed in your culture. Compare and contrast unemployment remedies of your culture with that of any other culture. Cite your work.