Assignment:
Complete all questions listed below. Clearly label your answers.
1.The receipts and year of release of the five movies with the largest nominal box office revenues, along with the CPI data of each year are presented below. Assuming that the receipts for each of the movies were derived during their year of release, convert the receipts for each to real dollars for the year 2010 (2010 CPI 218.1).Put the movies in order from largest to smallest real box office receipts.
|
Movies
|
Nominal
Box Office Receipts (millions)
|
Year Released
|
CPI in Year Released.
|
|
Avatar
|
$760.50
|
2009
|
214.5
|
|
Titanic
|
600.8
|
1997
|
160.5
|
|
Star Wars
|
461
|
1977
|
60.5
|
|
Shrek 2
|
437.2
|
2004
|
188.9
|
|
E.T. The Extra-Terrestrial
|
399.9
|
1982
|
96.5
|
3.Use the following data to calculate (a) the labor force participation rate, (b) the unemployment rate, and (c) the employment/population ratio.
|
Population age 16 and over
|
15,000
|
|
Labor force
|
7,300
|
|
Not currently working
|
4,500
|
|
Employed Full-time
|
5,000
|
|
Employed Part-time
|
1,100
|
|
Unemployed.
|
1,200
|
|
|
|
4.Consider an economy with the following aggregate demand (AD) and short-run aggregate supply (SRAS) schedules. Decision-makers have previously made decisions anticipating that the price level during the current period will be P105.
a.Indicate the quantity of GDP that will be produced during the period.
b.Is it a long-run equilibrium level of GDP? Why or why not?
c.How will the unemployment rate during the current period compare with the natural rate of unemployment?
d.Will the current rate of GDP be sustainable into the future? Why or why not?
|
AD
105
|
Price Level
|
SRAS105
|
|
6300
|
90
|
4500
|
|
6000
|
95
|
4800
|
|
5700
|
100
|
5100
|
|
5400
|
105
|
5400
|
|
5100
|
110
|
5700
|
|
4800
|
115
|
6000
|