What is GDP?
What is the difference between the nominal GDP and real
GDP?
Explain why comparing the GDP’s of various nations might
not tell you which nation’s people are better off.
What is the difference between Nominal GDP and Real GDP? How can
the ratio of Nominal to Real GDP indicate how much inflation an
economy has been experiencing?
(15 pts) (a) What is the difference between actual (nominal)
GDP and real GDP?
a. Which is used to track the business cycle: nominal or real
GDP?
b. Which type of unemployment involves workers with marketable
job skills: frictional or structural?
c. Define “natural unemployment.”
d. List two items that are excluded from GDP.
Answer the following macroeconomics questions.
a) What is the difference between nominal GDP and real GDP? Which
one of them is used to calculate the economic growth rate? Justify
your answer.
b) Give the equation used to calculate the unemployment rate. State
the different types of unemployment. In your opinion, which type is
the most problematic one? Justify your answer.
c) Governments may achieve certain economic goals; say controlling
inflation, by implementing fiscal and/or monetary policies. Explain
briefly the difference...
Introduction
This exercise deals with the difference between nominal and real
GDP, and also explores the characteristics of the components of GDP
over time.
Instructions Go to BEA.gov and in the U.S. Economic Accounts
find Table 1.1.5 (nominal GDP) and Table 1.1.6 (real GDP) and
download them for the period 1960 to the latest available year in
annual frequency (yearly).
In Excel plot line 1 of both tables within a single graph. Where
do they cross? Explain what is the...
This exercise deals with the difference between nominal and real
GDP, and also explores the characteristics of the components of GDP
over time.
Show all work and formulas
Instructions
Go to BEA.gov and in the U.S. Economic Accounts find Table
1.1.5 (nominal GDP) and Table 1.1.6 (real GDP) and download them
for the period 1960 to the latest available year in annual
frequency (yearly).
In Excel plot line 1 of both tables within a single graph.
Where do they cross?...
This exercise deals with the difference between nominal and real
GDP, and also explores the characteristics of the components of GDP
over time.
Instructions- Go to BEA.gov and in the U.S. Economic Accounts
find Table 1.1.5 (nominal GDP) and Table 1.1.6 (real GDP) and
download them for the period 1960 to the latest available year in
annual frequency (yearly).
In Excel plot line 1 of both tables within a single graph. Where
do they cross? Explain what is the relationship...
3. Inflation a) What is the difference between real and nominal
GDP?
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b) Suppose the base year is 2005, and the only goods in the
economy are apples and bananas. In 2005 both apples and bananas
cost $1, and 100 apples and 100 bananas are produced. In 2006,
apples cost $20 and bananas cost $5, and 50 apples and 200 bananas
are produced.
1. What is nominal GDP in 2005? _______ In 2006? _______ 2. What
is real...
What is the difference between nominal and real GDP?
What is unemployment? Which types of unemployment do you
know?
Which type of unemployment can be considered as acceptable? What
should be its
level?
How is inflation calculated? What is the optimal level of
inflation in the economy?
What is “bad inflation”?
Phillips curve.
Which instruments of monetary policy do you know?
Which instruments of fiscal policy do you know?
What is contractionary/expansionary monetary policy? In which
stage of business
cycle...