In: Economics
Year | Quantity x | Price x | Quantity y | Price y | Population | Employed | Unemployed | Not Looking | CPI |
---|---|---|---|---|---|---|---|---|---|
1 | 40,000 | $4 | 55,000 | $12 | 1,925 | 1,575 | 53 | 263 | 118 |
2 | 41,500 | $4.30 | 56,100 | $12.25 | 2,030 | 1,628 | 70 | 289 | 123 |
3 | 41,200 | $4.50 | 56,000 | $12.40 | 2,188 | 1,750 | 114 | 298 | 125 |
What is the GDP deflator in year 1?
Calculate the real GDP growth rate between years 2 and 3.
What is real GDP per capita in year 3?
What is the unemployment rate in year 2?
What is the labor force participation rate in year 1?
What is the inflation rate, as measured by the CPI between years 1 and 2?
YEAR | QUANTITY x | PRICE x ($) | QUANTITY y | PRICE y ($) |
1 | 40,000 | 4 | 55,000 | 12 |
2 | 41,500 | 4.3 | 56,100 | 12.25 |
3 | 41,200 | 4.5 | 56,000 | 12.4 |
We know,
GDP Deflator =(Nominal GDP/Real GDP)*100
Nominal GDP = (Price x * Quantity x) + (Price y* Quantity y)=40000*4+55000*12= 820000
Real GDP = (Price of x in base year * Quantity x) + (Price of y in base year * Quantity y)= 40000*4+55000*12= 820000
[Here base year = year1]
Here,
= 100
YEAR | QUANTITY x | PRICE x ($) | QUANTITY y | PRICE y ($) | Real GDP |
1 | 40,000 | 4 | 55,000 | 12 | |
2 | 41,500 | 4.3 | 56,100 | 12.25 | 839200 |
3 | 41,200 | 4.5 | 56,000 | 12.4 | 836800 |
Real GDP growth rate between years 2 and 3 = [(Real GDP of year 3 - Real GDP of year 2 )/Real GDP of year 2]*100
[Note: Real GDP of year 2 and year 3 is calculated by taking year 1 as the base year]
= - 0.28
Real GDP per capita of year 3 = Real GDP of Year 3/population in year 3
= 382.45
The unemployment rate in year 2 = unemployed in year 2 /(unemployed in year 2+employed in year 2)
=4.12%
The labor force participation rate in year 1 =( Labour Force in year 1 / Working age population in year 1)*100
= [(Employed+Unemployed)/( Employed+Unemployed+Not Looking)]*100
=1628/1891
= 86%
The inflation rate, as measured by the CPI between years 1 and 2=[CPI of year 2 - CPI of year 1 / CPI of year 1]*100
= 4.24