Questions
1) Does the base year matter when computing RGDP? Can you pick the wrong base year?
2) Where did the "GDP Deflator" get its name?
3) Define the terms "Laspeyres index" and "Paasche index". Provide examples.
4) Is it possible that %ΔCPI and %ΔGDP Deflator disagree? Why or why not?
5) How does the US Bureau of Labor Statistics define "unemployed"? Is this a good definition?
6) What were the main trends in US LFPR over the past fifty years? What factors caused this change?
7) Using the income approach, what is the largest share of US GDP?
8) Japan has an unemployment rate of 10%, with 90 million employed people. When the unemployment rate was calculated, the economy had 5 million discouraged workers. A new jobs program instituted by the government drives all of the discouraged workers into the labor force, and 80% of them find jobs. What happens to the unemployment rate? In your opinion, was the jobs program successful?
9) Complete the following table.
|
Trillons of $USD
|
2007, Q1
|
|
Y
|
|
|
C
|
|
|
Durable goods
|
1.1
|
|
Nondurable goods
|
2.8
|
|
Services
|
5.8
|
|
I
|
|
|
Fixed investment
|
2.1
|
|
Nonresidential
|
1.4
|
|
Residential
|
0.7
|
|
Change in private inventories G
Federal
State and local NX
Exports Imports
|
-0.002
0.95
1.7
1.6
2.6
|
10) Which of the following are counted in I: stock trade, issue of stock, purchase of a pre-existing asset.