ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- Which of the following does inflation affect? OA. Both the level and the distribution of income. OB. The distribution but not the level of income. O C. The level but not the distribution of income. O D. Neither the level nor the distribution of income.arrow_forward2a. a. Define the term Gross Domestic Product (GDP)? What are the two ways tomeasure GDP? b. How is U-3, the standard measure of unemployment calculated? Critics state that this measure understates the true level of unemployment. Why? c. What is the cause of frictional unemployment? And structural unemployment?arrow_forwardWhich statement is CORRECT? Any person who can work and is of working age is considered part of the labor force. Core inflation uses a price index to measure inflation by excluding stock and real estate prices in its calculation. The Consumer Price Index is considered the best measure of long-term, underlying inflation. The purchase of flour by a bakery is not counted as GDP. A worker who is retired is considered unemployed. L Moving to the next question prevents changes to this answer. JUL 20 tv O □ Aarrow_forward
- 1arrow_forwardSuppose the base year is 2001. Looking at GDP data from the United States from 2001 to the present, what would be true of the relationship between nominal GOP and real GDP? OA. RGDP NGDP because prices are stable. OB. RGDP NGDP because pridas are falling OD. The relationship is uncertain without more information on prices.arrow_forwardSuppose the GDP deflator was 200 in 2008 and 190 in 2009. In addition, nominal GDP was 1% lower in 2009 than in 2008. Given this information, the approximate. rate of real GDP growth in 2009 was: O 3% 4% O 5% 6%arrow_forward
- For many everyday economic applications, when economists adjust nominal dollar figures for inflation, they use the CPI rather than the GDP deflator, because the CPI reflects a , whereas the GDP deflator reflects a. "all" goods and services in GDP; market basket of "all" expenditures by "urban consumers' O b. market basket of "all" expenditures by "urban consumers"; "all" goods and services in GDP Ос. "all" goods and services in GDP; representative market basket of goods and services consumed by typical "urban consumers"; O d. representative market basket of goods and services consumed by typical "urban consumers"; "all" goods and services in GDP Next pagearrow_forwardYear Price Deflator Nominal GDP 500 2005 95.4 2006 600 100.0 2007 700 102.5 2008 800 103.1 Refer to the above table. Real GDP in 2005 is 477 O 524.1 O 190.8 O 500arrow_forwardQuestion 1 If the unemployment rate is 10%, while the number of employed individuals is 900, what is the labor force? A. 810. B. 900 C. 990 D. 1000 Question 2 When an economy experiences INFLATION, which of the following measures of the GDP grows at a faster rate? A. Nominal GDP B. Real GDP C. None of the above, as both, Nominal and Real GDP measures expand at the same rate. Question 3 Consider the following ecnomy: Total Population = 1000 Total Adult Civilian (non-institutionalized) Population = 700 Number of people employed = 200 Number of people without jobs but looking for work = 80 What is the labor force participation rate in this economy? A. 28% B. 40% C. 70% D. None of the above Question 4 A Japanese firm manufactures cars in the US. Assume that each car sells for $20,000 to a consumer in the US. Also assume that from the sale of each car the Japanese manufacturer earns $2000 in profits and remits those to the holding company in Japan. Assume that the car is manufactured with…arrow_forward
- If the nominal rate of interest is 5 percent for a bond issued by the United States Government and the inflation rate is 2 percent, the real rate of interest is ___. The nominal rate of interest will _______ if the inflation rate rises or increases to 6 percent (that is, the inflation rate increases by 4 percent). A. unknown; rise by 4 percent B. 3 percent; rise by 4 percent C. 3 percent; fall by 4 percent D. 7 percent; fall by 4 percentarrow_forwardThe CPI is more commonly used as a gauge of inflation than the GDP deflator is becaust the O a. GDP deflator cannot be used to gauge inflation. O b. CPI is easier to measure. O c. CPI better reflects the goods and services bought by consumers. O d. CPI includes more goods and services that the GDP deflator does. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.arrow_forward!arrow_forward
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