GDP
Using the expenditure approach, calculate GDP:
Consumption = $4,000, Investment = $800, Government Spending = $1,200, Exports = $500, Imports = $600
GDP = C + I + G + (X – M) = $4,000 + $800 + $1,200 + ($500 – $600) = $5,900
What is a base year's CPI?
100
If there are 8 million unemployed people and 160 million in the labor force, what is the unemployment rate?
Unemployment Rate = (Unemployed / Labor Force) × 100 = (8 / 160) × 100 = 5%
What is the formula for calculating the labor force?
Labor Force = Employed + Unemployed
If nominal GDP is $10,000 and the GDP deflator is 125, calculate the real GDP.
Real GDP = (Nominal GDP / GDP Deflator) × 100 = ($10,000 / 125) × 100 = $8,000
If the CPI in Year 1 is 120 and in Year 2 is 126, calculate the inflation rate.
Inflation Rate = [(126 – 120) / 120] × 100 = 5%
If the working-age population is 200 million and the labor force is 150 million, calculate the labor force participation rate.
Labor Force Participation Rate = (Labor Force / Working-Age Population) × 100 = (150 / 200) × 100 = 75%
Which of the following calculations represents the amount of GDP per capita?
GDP per Capita = GDP / Population
If real GDP was $20,000 last year and $21,000 this year, calculate the GDP growth rate.
Growth Rate = ((21,000 – 20,000) / 20,000) × 100 = 5%
What is the formula for calculating the Consumer Price Index?
CPI = (Current Year Price / Base Year Price) × 100
If the frictional unemployment rate is 3% and the structural unemployment rate is 2%, what is the natural rate of unemployment?
Natural Rate = Frictional + Structural = 3% + 2% = 5%
If the labor force is 140 million and the working-age population is 185 million, what is the labor force participation rate?
75.7%
If nominal GDP was $500 billion last year and $530 billion this year, calculate the nominal GDP growth rate.
Nominal GDP Growth Rate = ((530 – 500) / 500) × 100 = 6%
If the nominal GDP is $1,650 billion and the Real GDP is $1,475 billion, what is the rate of inflation?
11.9%
What is the formula for calculating the unemployment rate?
Unemployment Rate = (Unemployed / Labor Force) × 100
If the nominal GDP is $800 billion and the Real GDP is $640 billion, what is the GDP deflator?
125
What is the formula for calculating Real GDP?
Real GDP = (Nominal GDP / GDP Deflator) × 100
If the market basket in Year 1 costs $50 and in Year 2 it costs $55, what is the CPI for Year 2 if the base year is Year 1?
CPI = (Cost of market basket in Year 2 / Cost in Year 1) × 100 = (55/50) × 100 = 110
What is the formula for calculating the Cyclical Unemployment rate?
Cyclical Unemployment = Total Unemployment - Natural Rate of Unemployment
data for Country X:
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