1)
The unemployment rate is calculated by dividing the number of unemployed by the labor force.
The labor force is calculated by subtracting three things from the population (# under 16, # of
institutionalized adults, and # not looking for work). In this example,
you are given the size of
the labor force (800)
, and you are also told that 720 are employed. Therefore, 80 are
unemployed, and the unemployment rate is simply 80/800 or 10%.
2)
You need to make use of the inflation formula for the GDP deflator here and compare results
between the two years.
For 2005:
100 = [$12 T / Real GDP] x 100
So, Real GDP must equal $12 T. You could also recognize that Real GDP and nominal GDP are
the same in the base year.
For 2006:
102 = [$15 T / Real GDP] x 100
1.02 = [$15 T / Real GDP]
Real GDP = $15 T / 1.02
So, Real GDP must equal $14.706 T.
The percentage increase in Real GDP will then be [(14.706  12) / 12] x 100 = (2.706 / 12) x 100
= 22.55%
Therefore Real GDP increases by 22.55% between 2005 and 2006.
3)
The rate of inflation is the rate of change of the inflation indicator, or more specifically: [(New
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 Summer '11
 gotches
 Economics, Inflation, Unemployment, United States dollar

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