PROBLEM SET # 2 Macroeconomics Print out the problem set and write in your solutions. Professional work is expected. Make sure the problem set is stapled. If you need a staple, go to the library. Problem sets without a staple will not be accepted. VVVV Multiple Choice Question There are a series of multiple choice questions at the end of this problem set. Using the adjacent table, write in your choice for each question. 1) Determine whether the following items are a nal good or intermediate good. If the item is a nal good, then determine which component of GDP {C, I, G, X, -M} it belongs to. a) Flour tortillas bought by Chipotle. b) A coffee grinder bought by Starbucks. 1) Determine whether the following items are a nal good or intermediate good. If the item is a nal good, then determine which component of GDP {C, I, G, X, -M} it belongs to. a) Flour tortillas bought by Chipotle. b) A coffee grinder bought by Starbucks. c) A coffee grinder bought by the president of the University for his/her home. d) New helicopter bought by the United States Air Force. e) A Japanese citizen buys a new Tesla Model X Performance and adds the ludicrous mode package. 2) The department of labor statistics has reported that the labor force contains 160 million people. The population of the United States is roughly 330 million. So approximately 170 million people are not part of the labor force. List at least 5 groups of people that are not in the labor force. If you list more than 8, I'll be impressed. Person A Now that the kids are in school for a full day, this person is looking for work and has interviewed for three jobs during the past two weeks. Person B This person has been laid off from a job but expects to be called back as soon as the economy improves. Person C This person has just graduated from college and will start a new job in three weeks. In the meantime, this person will tour Switzerland and stay at the Gimmelwald Mountain Hostel. This person was laid off last year when new equipment was installed at the plant, reducing the Person D number of workers needed. Shortly after being laid off, this person looked for a new job, was unable to find one and then stopped looking, even though this person still wants a job and is available for work. 3) The above table shows answers given by people interviewed in a government survey of households. Which individuals are considered unemployed using the official U-3 unemployment rate?4) Fill in the missing values. Time Period Labor Force Employed Unemployed Unemployment Rate Jan2007 146028 7116 4.6 Feb2007 152983 146057 6927 Mar2007 153051 146320 4.4 Apr2007 152435 6850 4.5 May2007 152670 145903 6766 4.4 Jun2007 153041 146063 6979 4.6 Jul2007 153054 145905 7149 4.7 Aug2007 152749 145682 7067 4.6 Sep2007 153414 146244 7170 4.7 Oct2007 153183 145946 7237 4.7 Nov2007 153835 146595 7240 4.7 Dec2007 153918 146273 7645 5 Jan2008 154063 146378 7685 5 Feb2008 146156 7497 4.9 Mar2008 153908 146086 7822 5.1 Apr2008 153769 146132 7637 5 May2008 154303 145908 8395 5.4 Jun2008 154313 145737 8575 5.6 Jul2008 154469 145532 5.8 Aug2008 154641 145203 9438 6.1 Sep2008 154570 145076 9494 6.1 Oct2008 154876 144802 10074 6.5 Nov2008 154639 10538 6.8 Dec2008 154655 143369 1 12865) Label the following statements as either frictional unemployment, structural unemployment, or cyclical unemployment. a) An ECON major just graduated from the University of San Francisco and is looking for a job. b) A recession causes General Motors to lay off 3,000 workers. c) Jobs at General Motors disappear as GM outsources its manufacturing plant to India. d) Taxi cab and Uber drivers lose their jobs when driverless, computer driven vehicles, are developed by Google. e) A sales associate at apple is laid off due to slow business after consumer spending falls. 6) Suppose that the population over age 16 and older is 25 million and the labor force is 20 million. There are currently 1 million discouraged workers, the number of people with full time jobs is 16 million and the number of people with part-time jobs is 2 million. What is the official unemployment rate (U3)? 7) Suppose the population 16 years and older is 160 million, the number of discouraged workers is 10 million, the labor force is 110 million and total employment is 90 million. Also, there are 2 million workers who have part-time jobs, but cannot find full-time work due to economic reasons. a) Calculate the official unemployment rate (U3). b) Using the definition of U4, calculate the unemployment rate. c) Lastly, using the definition of U6, calculate the unemployment rate.Multiple Choice: 1) The United States' economy is considered to be at full employment when: A. about 5 percent of the total population is unemployed. B. 90 percent of the labor force is employed. C. about 5 percent of the labor force is unemployed. D. 100 percent of the labor force is employed. 2) In the United States, employment information is compiled by: A) performing a census of every household in the nation. B) performing a quarterly survey 6,000,000 households. C) performing a monthly survey of 60,000 households. D) determining the average estimate of labor market specialists around the nation. E) contacting each of the 50 states' Departments of Labor. 3) The working-age population is dened as the number of A) people over the age of 16 who are not in jail, hospital, or other institution. B) people who have a job. C) people working full-time jobs who are over the age of 16. D) people looking for work. 4) An individual who has stopped looking for a job but has looked in the past and still wants a job is referred to as A) a contingent worker. B) a discouraged worker. C) a marginally attached worker. D) an unemployed worker. 5) Unemployment involving a mismatch of the skills of unemployed workers and the skills required for available jobs is called: A. frictional unemployment. B. structural unemployment. C. cyclical unemployment. D. compositional unemployment. 6) The natural rate of unemployment is the: A. unemployment rate experienced at the depth of a depression. B. full-employment unemployment rate. C. unemployment rate experienced by the least-skilled workers in the economy. D. unemployment rate experienced by the most-skilled workers in the economy. 7) Which government agency is responsible for calculating the unemployment rate? A) BEA B) NBER C) Census Bureau D) BLS 8) The unemployment rate fell despite 120,000 fewer jobs. This could be because of A) fewer teenagers looking for jobs b) an increase in structural unemployment c) more women entering the labor market d) more teenagers looking for jobs