Please help me with these questions of Macroeconomics

1 . The economy's income and expenditure The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Markets for Goods and Services Firms Households Markets for Factors of Production a) firms a)labor and capital b)households b)goods and services Based on this model, households earn income when purchase in markets for factors of production. Suppose Megan earns $575 per week working as a corporate attorney for Rowan and Martin Associates. She uses $9 to buy a box of aspirin at Pillmart Pharmacy. Pillmart Pharmacy pays Larry $300 per week to work the cash register. Larry uses $225 to purchase legal service from Rowan and Martin Associates. Identify whether each of the following events in this scenario occurs in the market for factors of production or the market for goods and services. Market for Factors of Market for Goods and Event Production Services Megan earns $575 per week working for Rowan and Martin Associates. O O Larry spends $225 to purchase legal service from Rowan and Martin O O Associates. Larry earns $300 per week working for Pillmart Pharmacy. O O8 . Sectoral shifts, frictional unemployment, and job searches Suppose the world price of cotton falls substantially. The demand for labor among cotton-producing firms in Texas will . . The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will 2. . The temporary unemployment resulting from such sectoral shifts in the economy is best described as 3. unemployment. Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply. Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks Establishing government-run employment agencies to connect unemployed workers to job vacancies Increasing the benefits offered to unemployed workers through the government's unemployment insurance program 1,2. a) increase b) decrease 3. a) structural b) cyclical c) frictional d) seasonal9 . Minimum-wage laws and unemployment Consider the market for labor depicted by the demand and supply curves that follow. Use the calculator to help you answer the following questions. You will not be graded on any changes you make to the calculator. Graph Input Tool (?) 24 Market for Labor 21 Supply Wage 3.00 (Dollars per hour) 18 Labor Demanded 1,050 Labor Supplied 150 (Thousands of (Thousands of 15 workers) workers) WAGE (Dollars per hour) 12 Demand 0 150 300 450 600 750 900 1050 1200 LABOR (Thousands of workers)Complete the following table with the quantity of labor supplied and demanded if the wage is set at $9.00. Then indicate whether this wage will result in a shortage or a surplus. Hint: Be sure to pay attention to the units used on the graph and in the table. For example, type in 100 for 100,000 workers. Labor Demanded Labor Supplied Wage (Thousands of workers) (Thousands of workers) Shortage or Surplus? a) shortage $9.00 b) surplus c) neither Suppose a senator considers introducing a bill to legislate a minimum hourly wage of $9.00. Which of the following statements are true? Check all that apply. If the minimum wage is set at $12.50, the market will not reach equilibrium. Binding minimum wages cause frictional unemployment. In the absence of price controls, a shortage puts upward pressure on wages until they rise to the equilibrium. In this labor market, a minimum wage of $9.00 is binding.10 . Contrasting labor union laws in two states Consider two states that adopt different laws concerning labor unions. The following graph shows the labor market in a state in the North. Initially, the market-clearing wage there is $8.00 per hour. Suppose that the legislature in this northern state passes laws that make it easy for workers to join a union. Through collective bargaining, the union negotiates a wage of $10.00 per hour. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Graph Input Tool (?) 16 Market for Labor 14 Supply Wage 2.00 ( Dollars per hour) 12 Labor Demanded 1,400 Labor Supplied 200 (Thousands of (Thousands of 10 workers) workers) CO WAGE (Dollars per hour) Demand 0 200 400 600 800 1000 1200 1400 1600 LABOR (Thousands of workers)Enter $10.00 into the box labeled Wage on the previous graph. Hint: Be sure to pay attention to the units used on the graph. At the union wage, E union workers will be employed. The following graph shows the labor market in a state in the South. The legislature in this state passes strong "right-to-work" laws that make it very difficult for unions to organize workers, so the wage is always equal to the marketclearing value. Except for this difference in legislation, the two states are very similar. The initial position of the graph corresponds to the initial labor market condiljon in the southern state before the labor union negotiated the new. higher wage for workers in the northern state. Suppose that after the wage goes up in the northern state. some workers in the northern state lose theirjobs and decide to move to the southern state. Adjust the graph to show what happens to employment and wages in the southern state. O Supply Demand Supply WAGE Demand LABOR Which of the following groups are better off as a result of the union action in the northern state? Check all that apply. Employers in the northern state Workers in the northern state employed at the union wage O All workers in the northern state O Workers who find new jobs in the southern stateWhich of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, inputs, or outputs. Check all that apply. O The aspirin Megan receives The $225 Larry spends to purchase legal service from Rowan and Martin Associates The $300 per week Larry earns working for Pillmart Pharmacy True or False: Gross domestic product (GDP) cannot be used to measure the economy's income. O True O False2 . Measuring GDP The following table shows data on consumption, investments, exports, imports, and government expenditures for the United States in 2017, as published by the Bureau of Economic Analysis. All figures are in billions of dollars. Fill in the missing cells in the table to calculate GDP using the expenditure approach. Data ( Billions of dollars) Consumption (C) 13,321.4 Investment (I) 3,368.0 Exports (X) 2,350.2 Imports (M) 2,928.6 Net Exports of Goods and Services Government Purchases (G) 3,374.4 Gross Domestic Product (GDP)3 . Real versus nominal GDP Consider a simple economy that produces two goods: pens and oranges. The following table shows the prices and quantities of the goods over a three-year period. Pens Oranges Price Quantity Price Quantity Year (Dollars per pen) (Number of pens) (Dollars per orange) (Number of oranges) 2016 1 125 200 2017 170 230 2018 4 150 170 Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP Year (Dollars) (Base year 2016, dollars) GDP Deflator 2016 2017 2018 a)decrease a) decrease From 2017 to 2018, nominal GDP b) increase , and real GDPb)increase a) -27% b) 0.3% The inflation rate in 2018 was C) 27% d) 78.8% e) 127% Why is real GDP a more accurate measure of an economy's production than nominal GDP? O Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not. O Real GDP is not influenced by price changes, but nominal GDP is. Real GDP does not include the value of intermediate goods and services, but nominal GDP does.4 . Calculating inflation using a simple price index Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college student's annual purchases. Suppose the following table shows information on the market basket for the CSPI and the prices of each of the goods in 2017, 2018, and 2019. The cost of each item in the basket and the total cost of the basket are shown for 2017. Perform these same calculations for 2018 and 2019, and enter the results in the following table. 2017 2018 2019 Price Cost Price Cost Price Cost Quantity in Basket (Dollars) ( Dollars) (Dollars) (Dollars) (Dollars) (Dollars) Notebook 10 20 3 Calculators 50 50 75 Large coffees 200 200 1 W H Energy drinks 100 200 4 Textbooks 10 100 1,000 120 150 Total cost 1,470 Price index 100 Suppose the base year for this price index is 2017. In the last row of the table, calculate and enter the value of the CSPI for the remaining years. Between 2017 and 2018, the CSPI increased by 9%. Between 2018 and 2019, the CSPI increased by Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all that apply. O Professors required each student to buy 10 textbooks, regardless of the price. A new type of personal transporter, which made it easier to get around places like university campuses, became available for purchase. As the price of energy drinks increased relative to the price of coffee between 2017 and 2019, students decreased their consumption of energy drinks and increased their consumption of coffee. The quality of textbooks increased dramatically from 2017 to 2019, with textbook companies bundling new online study aids with their books, but this quality change is hard to measure5 . Alternative price indexes Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator. The GDP deflator for this year is calculated by dividing the A . using B. by the C. A using D. and multiplying by 100. However, the CPI reflects only the prices of all goods and services E. Indicate whether each scenario will affect the GDP deflator or the CPI for the United States. Check all that apply. Shows up in the... GDF Scenario Deflator CPI A decrease in the price of a Treewood Equipment feller buncher, which is a commercial forestry machine made in the U.S. O O but not bought by U.S. consumers An increase in the price of a German-made car that is popular among U.S. consumers 0 A. a) value of all goods and services produced in the economy this year b) cost of a given market basket of goods and services c) value of all goods and services produced in the economy in the base year B. a) this year price b) the base year price C. a) value of all goods and services produced in the economy this year b) cost of a given market basket of goods and services c) value of all goods and services produced in the economy in the base year D. a) this year price b) the base year price E. a) produced domestically b) bought by consumers6 . Comparing salaries from different times Consider golfers who led the Professional Golfers' Association of America (PGA) in winnings at different points in time. Note that the winnings are nominal figures (unadjusted for inflation). To convert the original earnings of Nicklaus, Miller, and Norman, use the formula for converting dollar figures from an earlier era into year 2018 U.S. dollars. Using those figures, fill in the following table, making sure to round your responses to the nearest U.S. dollar. Nominal Winnings U.S. CPI Year Golfer (Dollars) (1983 = 100) Winnings in 2018 Dollars 1965 Jack Nicklaus 140,752 31.5 1. 1974 Johnny Miller 353,022 49.3 2. 1986 Greg Norman 653,296 109.6 3. 2018 Tiger Woods 5,443,841 251.1 5,443,841 True or False: According to the previous table, the golfer with the highest PGA winnings in nominal dollars is not the same as the golfer with the highest PGA winnings after adjusting for inflation. True O False 1. 561 / 17,657 / 1,121,995 / 1,216,995 / 35,342,827 2. 1,406 / 69,311 / 1,798,049 / 1,878,049 / 88,643,824 3. 2,602 / 285,150 / 1,496,739 / 1,561,739 / 164,042,626I . Measuring employment, unemployment, and labor force participation Consider a small economy composed of six people: Felix, Janet, Larry, Megan, Susan, and Raphael. Each person's employment status is described in the following table. Based on the criteria used by the Bureau of Labor Statistics (8L3), identify each person's status as employed, unemployed, \"not in the labor force\"(r'f not in the civilian labor force but still part of the adult population), or "not in the adult population\" if not in the civilian adult population. Person Slams Felix is a 23-yearold professional tennis player. when he's not competing, he works as a 1. v coach at a local tennis club. Janet is a 42year-old autoworker who was just laid off by her employer 2' v . She is trying to nd any kind ofjob to help make ends meet. Larry is a 41-year-old graphic designer who is taking 2 years off from work to care for his 3, v small daughter. Susan is a 31-year-old science teacher who taught at West Valley Middle School last year. 4' v Due to budget cuts, she was laid off at the end of the school year. It's the summer now, and after a few weeks of yacaon with her family, she is looking for a parttime job as a tutor. Raphael is a 20yearold American Studies major at the University of Tennessee. It's 5' 7 summer now, and he is working as a lifeguard in Mobile, Alabama. Megan is a 11yearold student at East Valley Middle School. She habysits her younger 6' v broiher and does other chores, so her parents give her an allowance of $30 per week. 1,2,3,d,5,6: a} employed b} not in the adult population c} not in the labor force d} unemployed Complete the right half of the following equation to reflect the labor force participation rate reported by the BLS. Labor Force Participation Rate = According to this formula, what is the labor force participation rate of this economy of six people? O 40% 100 x Number of Employed Workers Adult Population O 50% 100 X Number in Labor Force Number of Employed Workers 80% 100 x Number in Labor Force Adult Population O 100% Number of Unemployed Workers 100 x Labor Force Complete the right half of the following equation to reflect the unemployment rate reported by the BLS. Unemployment Rate = According to this formula, what is the unemployment rate of this economy of six people? 40% 100 x Number of Unemployed Workers Labor Force O 50% 100 x Number in Labor Force Adult Population O 80% 100 x Number of Employed Workers Adult Population 100% 100 x Number in Labor Force Number of Employed Workers