B in 1930 the cpi was 14 and a cook earned 20 a week

b. In 1930, the CPI was 14 and a cook earned $20 a week.
c. In 1940, the CPI was 16 and a gallon of gas cost $0.20.
3) The table below uses data for three hypothetical countries. All the number values are in thousands.
a. Complete the following table:
Country Adult
Population
Labor
Force
Employed Unemployed Unemployment
Rate
Labor-Force
Participation
Rate
A 120,000
64,500
60,000 4,500
6.98 53.8
B 46,667 28,000 25,000 3,000 10.71 60
C 70,000 40,000
36,000 4,000
10
57.14
High rate of unemployment in an economy negatively affects individuals, their families, and a nation
as a whole since labor force is a very important productive resource. Based on this background
information and the table you completed under “3a” , answer the following questions.
b. How does the government officially measure employment and unemployment in the economy?
Why is it usually stated that the official unemployment rate likely underestimates the actual
level of unemployment in the economy?
c. Based on the table under “3a” , describe the relationship between employment and economic
well-being in the economy for each country. What are the impacts of labor force utilization and
high unemployment rate on the national economy of country A, B, and C?
4) The following table indicates U.S. real GDP data to answer the following questions.
Year Real GDP (2000
prices) (in millions)
Population
(in millions)
1987 $6,435,000 243
2005 $11,092,000 296.6
a. What is the Real GDP per person in 1987?
b. What is the Real GDP per person in 2005?
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[204] Unit 5 Assignment Template
d. What is the percent change in Real GDP per person between 1987 and 2005?
5) 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
economy.
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