Uy Quiz: Week & Final Exam X·q:Web Search vryu.instructure.com/courses/16723/qui

Question

Uy Quiz: Week & Final Exam X·q:Web Search vryu.instructure.com/courses/16723/quizzes/46425/take elny Commons a Concur M gmail [] Esc concur Bible.com w wikiped W Wik . Login! Salesforce Fidelity (Part A) Suppose nominal GDP in 2012 was $100 billion and in 2014 it was $150 billion. The general price index in 2012 was 100 and in 2014, it was 120 Between 2012 and 2014, the real GDP rose by what percent? (20 points) (Part B) Use the following scenario to answer the questions (Part B1) and (Part B2). In a given year in the United States, the total number of residents is 100 million the number of residents under the age of 16 is 38 million, the number of institutionalized adults is 15 million, the number of adults who are not looking for work is 17 million, and the number of unemployed is 5 million (Part B1) Refer to the data in the above scenario. What is the size of the labor force in the United States for the given year? (5 points) (Part B2) Refer to the data in the above scenario What is the unemployment rate in the United States for the given year? (5 points) HTML Edso -Paragra up 5 6 8 0

Explanation / Answer

PART A

Nominal GDP in 2012 = $100 billion

Price index in 2012 = 100

This value of price index implies that 2012 is the base year.

Value of real GDP in base year is equal to the nominal GDP of base year.

So,

Real GDP in 2012 = $100 billion

Nominal GDP in 2014 = $150 billion

Price index in 2014 = 120

Calculate real GDP in 2014 -

Real GDP = Nominal GDP * (Price index in 2012/Price index in 2014)

Real GDP = $150 billion * (100/120)

Real GDP = $125 billion

The real GDP in 2014 is $125 billion.

Calculate percentage increase in real GDP -

Percentage increase = [(Real GDP in 2014 - Real GDP in 2012)/Real GDP in 2014] * 100

Percentage increase = [($125 billion - $100 billion)/$100 billion] * 100

Percentage increase = 25%

Between 2012 and 2014, the real GDP rose by 25 percent.

PART B

B1

Calculate the size of the labor force -

Labor force = Total number of residents - number of residents under the age of 16 - number of institutionalized adults - number of adults not looking for work

Labor force = 100 million - 38 million - 15 million - 17 million

Labor force = 30 million

The size of labor force in the United States is 30 million.

B2

Calculate the unemployment rate -

Unemployment rate = (Number of unemployed/Labor force) * 100

Unemployment rate = (5 million/30 million) * 100

Unemployment rate = 16.67%

The unemployment rate in the United States is 16.67 percent.

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.