1. Classify the following workers into ONE of the Five Types of Unemployment and why? Be Specific in your answer: (1) Amy is laid off from IBM as part of cost-cutting by the firm (2) Christie is laid off from department store after Christmas (3) Tom quits his present job and is looking for a job in teaching (4) Jim is till looking for a job due to higher minimum wage laws, (5) Jerry is laid off as a garbage collector, due to new machine at collects the trash instead.
2. President Trump in 2017 will be earning $400,000 and President Clinton is 1999 was earning $200,000. What will be the change in the purchasing power of the President's salary to 2017, Compared to President Clinton's salary in 1999 of $200,000. The CPI in 2017 is 250 and CPI in 1999 was 150. What is meant by purchasing power? Which President has the higher NOMINAL Income?
3. The real unemployment rate is underreported and the real inflation rate is over reported. Do you agree with that statement. Give examples. Can the government do anything to make a more accurate measure?
4. Calculate the (1) unemployment rate, (2) labor force participation rate, (3) adult population and (4) the total population for the small town with the following statistics: employed = 1,000, labor force = 1,200, Not in the Labor Force = 800 and minor population of 500.
5. Given the figures provided, calculate the GDP for the country, using the Expenditure Approach ONLY. Show your work. National income = 1,000, consumption = 3,000, net private domestic investment = 1,500, government purchases = 2,000, exports = 500, transfer payments by government = 400, imports = 800, depreciation = 500 and corporate income = 1,000.