Homework+3 (1)

Homework+3 (1) - rate and the labor force participation...

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Problem Set 3 Home Work Assignment READ ALL INSTRUCTIONS CAREFULLY! All work must be submitted by the due date. You will receive NO credit if homework is turned in after the deadline. Full credit will be given for accurate, complete and neat work. Please save your work as a word document or type right into the assignment window in oncourse. Please rewrite the question and provide the answer below it. Points will be deducted if instructions are not followed. Read Chapter 10, 11 of the text book and answer the following questions: All questions worth 2 points each. 1. What are the three basic measures of macroeconomic performance? 2. If the population of a country is 600,000 people, its labor force consists of 400,000, and 20,000 people are unemployed. What is the unemployment
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Unformatted text preview: rate and the labor force participation rate? 3. What is the difference between Real GDP and nominal GDP? 4. Given that in 1995 real GDP was $6,742.1 and nominal GDP was $7,265.4, what is the value of the GDP deflator? 5. For the Keynesian model, explain the reasons why the aggregate demand curve is downward sloping? 6. What is the difference between structural and frictional unemployment? 7. What are the components of aggregate demand? 8. If full employment GDP is greater than equilibrium GDP, what problem is this economy facing? (recession or inflation) 9. What is a business cycle? 10. How does a recession differ from a depression?...
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