Please help me. thank you for answers. 5 stars! b. c. why nominal GDP is always

Question

Please help me. thank you for answers. 5 stars!

b. c. why nominal GDP is always higher than real GDP. Which do you think is a better measure ofeconomic growth? why it is not possible or desirable for a marketbased economy to have a 0% unemployment rate without massive government interference with its economy, like in "modern" North Korea. Travistan 2016 Population Survey (in millions) 150 92 15 Total Population Full time Employed Population Full time College Students Children under 16 Retired population Unemployed and searching for work Unemployed and not searching 10 d. Calculate Traxistan's unemployment rate (U-3) in 2016 e. Assume Travistan saw a massive increase in imported goods that directly compete with their domestic industrial production, which type of unemployment would economists expect to see? f. Calculate Traxistan's total labor force participation rate in 2016 g. Why is their labor force participation rate so low? h. Do you feel like your answer to the previous question poses a long-term problem for their macroeconomy?

Explanation / Answer

a)

Used good calculation of nominal GDP would lead to the doubling counting as these goods have already been included in GDP calculation of previous year.

b)

Typically, Nominal GDP is higher than real GDP. Change in price level affects the nominal GDP directly while this is not a case with real GDP. Hence, nominal GDP is higher than real GDP.

Real GDP is better measure of economic growth since it includes actual change in production of goods and services.

c)

it is not possible to achieve target of 0 % unemployment rate. Presence of frictional and structural unemployment keep unemployment rate above the zero percent. Frictional unemployment is caused by the difference between time gap between previous job and time taken to find new job. Hence, 4 % unemployment is considered as natural rat of unemployment or this is called full employment.

d)

unemployment rate =   unemployed / unemployed + Employed

                                   = 8 / 92+8

                               = 8/100

                            = 8 %

e)

Unemployment is caused by the cheaper import is called structural unemployment.

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