Q3: Nominal GDP (NGDP) vs. Real GDP II (RGDP) (8P) A rival commune consists of carnivores who make a big secret out of the goods they grow and consume. The only available information we have are aggregates. Specifically, we know the NGDP and the GDP Deflator, i.e. an approximation of the level of prices of domestically produces goods. GDP Statistics 2005 2010 2015 NGDP 6,539 10,980 16,245 RGDP GDP deflator 70.6 85.1 105.0 Population 50 85 140 a) Compute RGDP for each year. 2005 = 9262 2010 = 12902 2015 = 15471 b) Compute the growth of NGDP and RGDP from 2005-2010, and from 2010-2015. 67% 20% c) Compute NGDP per capita for each year and explain why it makes sense to divide GDP 48% 39.30% measures by population (2 sentences max.). 2005 = 6539/50 = 130.7 2010 = 10980/85 = 129.1 Q4: Inflation (5P) 2015 = 16245/140 = 116 Use this table in order to compute the "College Price Index" (i.e. CPI) for 2005 and 2015 using the base 2005 = 100 as well as the Inflation rate between 2005 and 2015 Item Price (2005) Quantity (2005) Price (2015) Quantity (2015) 240 Button-down shirts 10 1 25 Loafers 25 1 55 1 Sneakers 10 3 35 2 19% Textbooks 12 12 40 10 Jeans 12 3 30 2 Restaurant meals 5 11 14 8 Q5: Unemployment (5P) For each question explain what kind of unemployment it implies (2 sentences max.). a) In the aftermath of the Dotcom-bubble in the early 2000's the US faced a period of time with declining GDP. b) In an episode of "King of Queens" Arthur Spooner gets nostalgic about the good old times when he was a more or less talented bowling ball polisher. Why did he lose his job eventually? c) Carrie, Arthur's daughter, was initially a legal secretary. However, her boss, Mr. Pruzan, was a bad lawyer and got fired - and so did Carrie. Ultimately she had to look for a new job and became a Real Estate Agent. d) Doug Heffernan, Carrie's husband, is a truck driver for IPS and he loves his job! He enjoys eating, drinking beer, and watching Sports with his. According to an article I read the other day he might be able to enjoy his hobbies even more soon. That article claims that within 10 years there will be only few truck drivers that will keep their job. Can you imagine why? e) Why don't I get paid from July until September? Super annoying