Question 1

Consider a macroeconomy that produces two goods.

Quantity

\f(BAFB1083) 2024 Fined Exs CONFIDENTIAL There are THREE (3) questions In this section. Answer ALL questions. (60 Marks) Question 1 Consider a macroeconomy that produces two goods. Quantity Price Product 2012 2013 2012 2013 A 6 RM95 RM118 B A RM47 RM71 a) Calculate nominal and real GDP for 2012 and 2013 using 2012 as the base year. What is the GDP deflator in 2012 and 2013? What is the corresponding inflation rate? (5 Marks) b) Ignore prices for a moment and just focus on quantities. Did aggregate output increase or decrease between 2012 and 2013? How does this relate to the change in real GDP? Defend your answer. (5 Marks) c) Describe and differentiate between frictional, structural, cyclical and seasonal unemployment. Provide examples to illustrate each type. (10 Marks) (Total: 20 Marks)