During the outbreak of COVID-19 in 2020, most households in the United States had decided to prepare as many of their meals as possible at home. Each day they purchased the ingredients needed for 900 million meals at an average cost of $7 per meal at stores. They also purchased 100 million meals from restaurants at an average price of $15 per meal.

With the vaccination rates growing in 2021, households are expected to increase their restaurant use by 150 million meals to 250 million meals, thus reducing meals prepared at home by the same number of meals to 750 million meals per day. Assume that the cost of groceries and food preparation per meal at home and the price of restaurant meals in 2021 are the same as in 2020. How much will this shift in food consumption pattern increase the US GDP per day compared to the situation in 2020?

a.$0 million per day

b.$500 million per day

c.$700 million per day

d.$1,200 million per day

e.$2,250 million per day

QUESTION 4

1. The Central Statistics Office of India has calculated the annual constant-price and chain-rule GDP values for 2020 using 2019 as the base year. As was the case for many other economies, India had suffered from a Covid-related recession in 2020. From what you know about the constant price and chain rule calculations, you expect that for 2020 the constant-price GDP figure
2. a.to be lower than the chain-rule GDP figure.
3. b.to be the same as the chain-rule GDP figure.
4. c.to be higher than the chain-rule GDP figure.
5. d.to be lower than the chain-rule figure since 2020 was a recession year.
6. e.to be higher than the chain-rule figure since 2020 was a recession year.

According to the US Bureau of Labor Statistics (BLS), in November 2020 the U.S. labor force declined by 400,000, when compared to the situation in October 2020. At the same time, the number of people unemployed decreased by 326,000. How much did the total employment in the US change in November 2020 compared to October 2020?

a.-326,000

b.-74,000

c.+245,000

d.+326,000

e.+726,000