Question
Gross Domestic Product (GDP), unemployment, inflation, and economic growth are key measures of a country's economic performance. The following statistics are from the country of
Gross Domestic Product (GDP), unemployment, inflation, and economic growth are key measures of a country's economic performance.
The following statistics are from the country of Pattiland in 2016; dollar values are measured in 2016 dollars.
-Consumption = $90
-Investment = $65
-Exports = $25
-Imports = $50
-Government Spending = $50
-Taxes = $20
-Population = 50
-Labor force = 25
-Employed = 20
-GDP deflator (2016) = 90
a) Calculate each of the following and show your work.
- Nominal GDP
- Real GDP
- Real GDP per capita
b)Debbie is a citizen of the country of Wayland and owns a computer software firm in Pattiland. Is the output produces by Debbie's computer software firm included in Pattiland's nominal GDP calculated in part a? Explain.
c) The GDP deflator for Pattiland in 2015 was 110. In 2016 was Pattiland experiencing inflation or deflation, or is there insufficient information to determine Pattiland's economic condition? Explain.
d) Calculate the unemployment rate in Pattiland.
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