Assignment:
Short Answer Questions. Please address the following questions. Your total page requirement is 3- to 5-pages, double spaced, typed, APA format, ONLINE SOURCES ONLY.
1. Suppose that in 2013, the economy produced 10 shirts at $20 each and 5 hamburgers at $5 each. In 2014, the economy produced 15 shirts at $21 each and 10 hamburgers at $6 each. Calculate the nominal GDP in 2014. What is the value of real GDP produced in 2014 using 2013 as the base year?
2. Suppose an economy consists of 500,000 individuals 16 years and older, 260,000 are employed, and 21,000 are unemployed but actively seeking work. Calculate the unemployment rate.
3. Suppose that the CPI in Egypt was 111 in 2011 and 122 in 2012. Calculate the inflation rate between those two years.
4. True/False Statements. Indicate if the statement below is True or False. You must support your answer with a few sentences for each statement.
a. Intermediate goods are not counted as part of gross domestic product.
b. Individuals who are not working and are not actively looking for work are counted as unemployed if they have looked for work in the past.
c. The natural rate of unemployment consists of frictional and cyclical unemployment
d. Inflation distorts the operation of our tax and financial system.
Assignment Expectations - ONLINE RESOURCES with Accessible Links ONLY
Use concepts from the modular background readings, as well as any good-quality resources you find. Please be sure to cite all sources within the text and provide a reference list at the end of the paper.
The following items will be assessed:
• Your ability to apply the basic economic concepts to the questions.
• Some in-text references to the modular background readings
• The assignment should address each question for full credit. Remember to support your answers with solid references, including the case readings
Production, Unemployment, and Inflation, Podcast. https://www.pearsoncustom.com/mct-comprehensive/asset.php?isbn=1269879944&id=11636
Production, Unemployment, and Inflation, Interactive Tutorial. https://www.pearsoncustom.com/mct-comprehensive/asset.php?isbn=1269879944&id=12299
Other resources are allowed but must be accessible online