ECON 2301- Define and explain unemployment

PRINCIPLES OF MACROECONOMICS

Worksheet Assignment-Cover Sheet

Student’s Name: _______________________________________

Class: ECON 2301________ Section:_____________________

Date:------------------

Assignment Instructions

Be sure to show all of your work and how you arrived at your answer. Label your diagrams clearly (where applicable). Your work must be typed and submitted electronically (via eCampus). You may complete your work in the space provided in this worksheet. Include the worksheet and cover sheet in your uploaded final work

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http://ecampus.support.dcccd.edu/v91/studenttutorials/StudentAssignmentv91/StudentAssignmentv91.htm

Question 1

A. Define and explain unemployment (10 points)

2014

2015

Population

224

227

Adult Population

168

170

#Unemployed

7

8

# Employed

105

104

B. From the given data above calculate and explain unemployment rates for 2014 and 2015(10 points)

Assessment Codes CT, WC, EQS

Given the national income (NI) data below (ALL figures are in billions of dollars) compute:

C. National Income (NI)(10 points)

National Income data

AMOUNT

Personal consumption $9,269

Compensation of Employees (Wages and salaries) $7,489

Gross private Domestic Investment $2,212

Government purchases of goods and services $2,527

Corporate profits $1,616

Depreciation $1,576

Exports $1,466

Imports $2,229

Proprietors’ income $1,015

Sales taxes $913

Interest $509

Rent $77

Miscellaneous $47

Inflation data

Year Price of

Books $ Quantity of Books Price of Pencils $ Quantity of Pencils Price of Pens $ Quantity of Pens

2011 $50 10 1.00 100 $5 100

2012 $50 12 1.00 200 $10 50

2013 $60 12 1.50 250 $20 20

The Inflation data above shows the prices and the quantities consumed in a college bookstore. Using 2011 as the base year

Calculate the inflation rate between 2012 and 2013 using the CPI approach.

D. Calculate inflation using the GDP deflator index and explain why consumer price index (CPI) overstates inflation when compared to inflation rate determined by using GDP deflator (15points)

Assessment Codes CT, WC, EQS

Question 2.

Using data from Bureau of Labor Statistics (BLS) Tables 2 and 3 in the months of August

2015 Seasonally Adjusted, compare and contrast Labor force participation rates (LFPR)

of four demographic groups: Whites, African –American, Asian and Hispanic.

Evaluate and discuss the differences in their LFPR(25 points)

Assessment Codes CT, WC, EQS