ECON 1102 Study Guide - Final Guide: Peanut Butter, Unemployment, Shampoo
Document Summary
Duesa review problems for econ 1102 final, winter 2016: suppose that annual output in year 1 in a 3-good economy is 3 quarts of ice cream, 1 bottle of shampoo, and 3 jars of peanut butter. In year 2, the output mix changes to 5 quarts of ice cream, 2 bottles of shampoo, and 2 jars of peanut butter. If the prices in both years are per quart for ice cream, per bottle of shampoo, and per jar of peanut butter, what was the economy"s gdp in year. What was its gdp in year 2: suppose that the natural rate of unemployment in a particular year is 5 percent and the actual rate of unemployment is 9 percent. Use okun"s law to determine the size of the gdp gap in percentage-point terms. In contrast, suppose that the cpi was 110 last year and is 108 this year.
