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