Econ 11 10 ICG #3 Name__ Bininnair, Me owned 1. Calculate the unemployment for a

Question

Econ 11 10 ICG #3 Name__ Bininnair, Me owned 1. Calculate the unemployment for an area population of 400,000 in which 190,000 people are employed Seore: Print Last Name, First Name out of 5 and 10,000 people are unemployed. Answer: Year Nominal income CPI S51,000 $53,550 $55,000 100 105 110 2. According to the table above, what is the dollar amount of real income in year 2? in year 3? Answer in year 3 Answer in year 2 Did the purchasing of nominal income increase, decrease, or stay the same between year 2 and year 3? Answer 3. According to the table above, what is the inflation rate for year 3? Round your final answer to the tenth. Answer Score out of 5 ICG #4 Consumption Expenditures Government Expenditures Personal Saving Investment Expenditures Exports Depreciation Imports $4,000 billion 1,200 billion 15 billion 1,000 billion 100 billion 250 billion 120 billion Use the information in the table above to calculate the dollar amount of each of the following 3. Net Investment- 4. Net Exports Disposable Income

Explanation / Answer

Answer 1 : Unemployment Rate =( Number of unemployed / Labour force )*100

Labour force = Employed + Unemployed

= 1,90,000+10,000 = 2,00,000

Number of people unemployed = 10,000

Unemployed rate = (10,000/2,00,000)*100 = 5%

Answer 2 : Real income = (Nominal income/ CPI)*100

In Year 2 :

Real income = (53,550/105)*100 = $51000

In Year 3 :

Real income = ( 55000/110)*100 = $50,000

As in this case nominal income has been increased from year 2 to year 3.

Answer 3 : Formula to calculate Inflation rate :

Inflation Rate of year 3 = ((CPI of year 3 - CPI of year 2)/ CPI of year 2 ) *100

Inflation Rate of year 3 = ((110-105/105))*100 = 4.7%

Answer 4 : 1. GDP = C+G+I+(Exports -Imports)

GDP = 4000+1200+1000+(100-120) = $6180

2. NDP = GDP - Deperication = $6180-$250 =$5930

3. NI = GI - Deperication = $1000-$250 =$750

4. Net export = (Export - Import ) = $100-$120 = -$20 billion

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