Handout 1

# Handout 1 - year they produced \$15 million worth of hay...

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Econ 3140 Handout #1 C. Rodriguez 1. Macroeconomic information for the economy of Anchovy is given below: Year 1 Year 2 Output (pizzas) 8000 9000 Employment (workers) 700 800 Unemployed (workers) 70 100 Labor force (workers) 770 900 Price per pizza \$8.00 \$9.00 (a) What was the growth rate of average labor productivity in Anchovy between Year 1 and Year 2? (b) What was the inflation rate in Anchovy between Year 1 and Year 2? (c) What was the unemployment rate in Year 1? In Year 2? 2. If C = \$500, I = \$150, G = \$100, NX = \$40, and GNP = \$800, how much is NFP ? 3. Citizens of the country of Heehaw produce hay and provide entertainment services (banjo playing). In one
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Unformatted text preview: year they produced \$15 million worth of hay, with \$11 million consumed domestically and the other \$4 million sold to neighboring countries. They provided \$7 million worth of banjo-playing services, \$5 million in Heehaw, and \$2 million in neighboring countries. They purchased \$6 million worth of soda pop from neighboring countries. Calculate the magnitudes of GNP, GDP, net factor payments from abroad, net exports, and the current account balance....
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