Macro Exam 1 Uploaded Section

1. a) If population 16 or older in Germany is = 72,159,000 and labor force participation rate (LFPR) = 63.45%, what is the size of the labor force?

b) In 2016, there were 8.2 million unemployed and 151.4 million employed workers in United States. Calculate the unemployment rate in 2016.

Show all your calculations for full credit.

2. Use either a shift in demand or a shift in supply to GRAPHICALLY represent each of the following situations. Also, label the graphs correctly and indicate the changes in equilibrium in each case.a) Avocado prices: Increased popularity of avocados as a health food.b) Gasoline prices: Interruption of oil supplies because of war in the Middle East.c) SUV market: Increased gasoline prices.d) Ipad market: Technology improvements reduce the cost of manufacturing.

Four separate graphs please.

3. How do the following affect the production possibilities curve? Use one graph for each question.

a) Economic contraction brought about by persistent war in Ukraine.

b) Labor productivity improvement due to improved technology.

One graph for each question.

4. GoodQuantityPrice in 1999Price in 2000

X10$5$6

Y20$10$10

Z5$6$10

Assume year 2000 is the base year.

a) Calculate the market basket value for each year. What is the consumer price index in 1999?b) What is the inflation rate between 1999 and 2000?

Show all calculations for full credit.

5. EXPLAIN two reasons why most nations around the world pursue policies that promote economic growth.