Based on the table under 3a, the relationship between employment and economic well-being in
the economy for each country varies depending on the unemployment rate. For country A, which
has the lowest unemployment rate, the economy is more likely to be experiencing an expansion
than countries B and C, with the highest unemployment rate of 10 plus percent. According to the
text, the unemployment rate typically rises during a recession and falls during an economic
expansion (Krugman and Wells, 2018). So, it would be likely to assume that country A is
experiencing economic growth while countries B and C are experiencing economic downfall or
recession. For country B, who has the highest labor-force participation rate and highest
unemployment rate, this would indicate that the well-being of their economy is the worst of the
three countries. The labor force participation rate combined with the unemployment rate of
country A shows that the job market is steady for the economy. However, for countries B and C,
they have higher levels of both labor force utilization and unemployment, which means the job
market is not only suffering, but the economies too.
Section 4: Changes in the Real GDP per Capita
The following table indicates U.S. real GDP data to answer the following questions.
Real GDP (2000
prices) (in millions)
What is the Real GDP per person in 1987?
b. What is the Real GDP per person in 2005?
c. What is the percent change in Real GDP per person between 1987 and 2005?
Section 5: Application of the Macroeconomic Aggregates
Now that you have segmented the components of macroeconomic aggregates, explain their
implications on the national economy. Provide examples based on your answers above and explain
how CPI affects consumers, how CPI affects price
the effects of employment and unemployment on
the U.S. economy, and how the changes in living standards could affect employees and the national