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Please help Consider the following employment data. (4 points) SAINTOPIA NATIONAL EMPLOYMENT DATA Total Adult Population- 100.000 Part-Time Employed- 20,000 Full-Time Employed- 52.000 Unemployed- 8,000
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Consider the following employment data. (4 points) SAINTOPIA NATIONAL EMPLOYMENT DATA Total Adult Population- 100.000 Part-Time Employed- 20,000 Full-Time Employed- 52.000 Unemployed- 8,000 1. What is the exact Unemployment Rate? 2. Assume the Natural Rate of Unemployment for Saintopia is 5%, and Saintopia is fully employed. Over time, the Natural Rate of Unemployment changes to 3% and Saintopia remains fully employed. What effect (if any) would the change from a 5% NRU to a 3% NRU have on Saintopia's future Production Possibilities Curve expansion? Why? 3. Consider the supply and demand for electric cars. If the government provides a new tax subsidy to electric car manufacturers at the same time that car dealers offer steep discounts on gas powered cars, what will happen to the price and quantity demanded of electric cars? 4. Explain why each of the following are not included when calculating GDP: "intermediate goods,"nonproduction transactions," and "non-market activities." 4. Consider the following chart for domestic oil supply and demand. Using letters and/or axis labels representing triangle vertices, please answer the following questions. (5 points) PRICE K WHO) Domestic Supply P2 G PW H - World Price P Domestic Demand Q1 QUANTITY OF OIL. a. What is the producer s e. How much oil would be imported at the World Price?Complete the following graphs. A. Draw and fully label a production possibilities curve for capital and consumer goods. B. Draw a business cycle graph with labels for the X-axis, Y-axis, and both lines. C. Draw point "U" on both graphs at a point representing current unemployment. D. Draw point "I" on both graphs at a point representing current inflation. E. Draw point "E" on both graphs at a point representing a properly functioning economy. 5. For each of the three types of unemployment, please (i) name and define the type and (ii) provide an example with an explanation why the example matches the definition. 6. What are the three major economic goals for all countries, and for each goal, what is an approximate target number for the United States? 7. Superland produces three final goods: superhero capes, Batmobiles, and Iron Man suits. The table below shows the prices for each good. OUTPUTS AND PRICES IN SUPERLAND This Year's Output This Year's Price 100 superhero capes $100 per cape 5 Batmobiles $10.000 per Batmobile 1 Iron Man suit $20,000 per Iron Man suit a. Calculate this year's nominal GDP. b. Assume that in the Base Year, capes Sold for $23. Batmobiles for $5.000, and Iron Man suits for $12,500. Calculate this year's real GDP c. Given your answers for (a) and (b), what is the GDP Deflator for the current year? d. If Superland's GDP Deflator in 1995 was 50, and the GDP Deflator in 2005 was 75, what was the inflation rate between 1995 and 2005? e. If fixed-rate borrowers expected an inflation rate of 5% between 1995 and 2005, and the actual inflation rate was 10%, would they be better or worse off? ExplainStep by Step Solution
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