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Unformatted text preview: Use equation (2.6) to explain your answer. T G = (I + NX) S NX = S-I (G-T) NX = 1000 800 400 Answer = NX = -200 Billion Since domestic saving is inadequate to finance both domestic investment and the government deficit, net exports must be negative in order to finance injections. Problem 2-5 If nominal GDP is $10,608 and real GDP is 10,400, what is the value of the GDP deflator? GDP Deflator = nominal GDP/real GDP GDP Deflator = $10,608/$10,400 GDP Deflator = 1.02 Problem 2-10 In 2009, civilian employment was 139,877,000 and unemployment was 14,265,000. What was the unemployment rate? Unemployment rate = Number of Unemployed/civilian employed + unemployed Unemployment rate = 14,265,000/ 139,877,000 + 14,265,000 Unemployment rate = 14,265,000/154,142,000 Unemployment rate = 9.25% EC 301...
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- Spring '11