ECO 1000 Lecture Notes - Lecture 76: Unemployment

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olivecattle778

4 Apr 2018

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Use the table below to answer the following question(s). If the consumer price index in 2008 was 150 and the cpi in 2009 was 165, the rate of inflation between. Gross domestic product is the sum of the purchase price of all final goods and services produced domestically during the period. None of the above would be officially classified as unemployed. In the early 1990s, the u. s. government substantially reduced defense expenditures. The resulting unemployment of defense-related workers, who possessed skills no longer needed by the economy, is an example of structural unemployment. Use the data below to answer the following question(s). The natural rate of unemployment equals the sum of frictional and structural unemployment. If a country"s population (age 16 and over) is 50 million, with 2 million unemployed and 23 million currently holding jobs, the unemployment rate is 8. 0 percent, and the labor force participation rate is 50 percent.

Related Questions

Suppose the following table shows some national accounting data for a given year for some particular country.

Table 1 national accounting data

Amount (billions of dollars)	Quantity demanded
Consumption of fixed capital	280
Gross private domestic investment	900
Government consumption expenditures	520
Government investment expenditures	200
Imports	580
Exports	680
Household consumption expenditures	3105
Net property income paid overseas	20

1.What is the country's current account balance? What is the country's gross national saving?

2.Explain how net exports affect the economy. Why do national income accountants use net exports to compute GDP, rather than simply adding exports to the other spending components of GDP?

tealtiger674

5. The income approach

The following table shows macroeconomic data for a hypothetical country. All figures are in billions of dollars.

	Billions of Dollars
Gross private investment (investment)	120
Capital consumption allowance (depreciation)	35
Exports	60
Imports	55
Government purchases	130
Personal consumption expenditures (consumption)	325
Indirect business taxes	20
Social insurance taxes	33
Corporate profit taxes	13
Undistributed corporate profits	4
Transfer payments	70
Personal taxes	90
Compensation of employees	380
Corporate profits	120
Rental income (of persons)	25
Net interest	40
Proprietors' income	5
Income earned from the rest of the world	90
Income earned by the rest of the world	45

National income can also be calculated based on disposable income. Use the following table to derive personal income and national income (in billions of dollars). Specify what needs to be added to disposable income to arrive at personal income, and explain how personal income should be adjusted to find national income.

	Billions of Dollars
Disposable income		500
Plus		+
Personal income		=
Plus social insurance taxes		+ 33
Plus		+
Plus undistributed corporate profits		+ 4
Minus		-
National income		=

National income is the total amount earned by the citizens of a country, while gross domestic product is the total value of goods and services produced within a country. To determine the gross domestic product, you have to make some adjustments to national income. Use the following table to derive gross domestic product and, as part of the process, net domestic product (NDP) (in billions of dollars). Again, specify what should be added to and subtracted from national income to arrive at the net domestic product, and what should be added to the net domestic product to arrive at the gross domestic product.

		Billions of Dollars
National income
Plus indirect business taxes		+ 20
Plus		+
Minus		-
Net domestic product (NDP)		=
Plus		+
Gross domestic product (GDP)		=

taupeweasel18

The data below relate to the economic performance of Examland economy for the year 2006. Item Amount in billions of Shs.

Government Purchase 2,250

Corporate profits 1,000

Consumptions of fixed capital 700

Gross private domestic investment 1,500

Personal taxes 400

Personal savings 500

Imports 800

Net interests 350

Rental income 750

Exports 900

Personal consumption expenditure 5,000

Dividends 300

Indirect business taxes 600

Contributions to social security 560

Transfer payments to Households 850

i) Calculate GNP using the expenditure approach.

ii) Determine National Income (NI)

iii} Calculate Disposable personal income (DPI)

lavenderporcupine862

ECO 1000 Lecture Notes - Lecture 76: Unemployment

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