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Unformatted text preview: Use equation (2.6) to explain your answer. T G = (I + NX) S NX = SI (GT) 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 25 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 210 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
 Kornilov
 Macroeconomics

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