Standard 5-Calculating Economics Indicators Assignment (Standard 5 Lesson 2 and 3) Directions: Calculate Using the calculation formulas, examples and notes (below), calculate the economic indicators GDP and Unemployment rate in the questions below. Questions begin on the next page. GDP Formula: Y =C+I+G + (X-M) Y = National Income (GDP) C = Consumer Spending 1 = Investment G = Government Spending X = Exports M = Imports GDP Example: Problem: Money Island is small island nation. Its population Solution: Y =C+I+G+ (X-M) total is 400, and it has 100 wage earners who earn an average of $50 per year. Each wage earner spends C = 100 x $40 = $4000 Total Consumer Spending a total of $40 per year buying goods and services of which $3.00 goes to buying imported goods. The I = 600 Total spent on Investment island exports a total of $800 worth of goods. The G =.1 x (100 x $50) = 500 10% of total income for Government tax rate is 10% and all government workers money is spent on building infrastructure and supporting schools. There is only one industry X = 800 Total received from Exports (uranium mining) on the island and it employs every M = 100 x $3.0 = -300 Total spent on Imports wage earner. The industry spends $600 each year on new mining equipment. $5600 Total = GDP What is the GDP? Unemployment Rate Formula: Unemployed Unemployment Rate = Employed + Unemployed Unemployment Rate Notes: People who are considered Unemployed: Must be 16 years or older and are able and willing to work (meaning they are actively seeking work) People who are not unemployed or employed: People who are in school or military full time, institutionalized (jails or hospitals), or who are retiredCALCULATING GDP: When calculating GDH put in the numbers for each of the GDP formula (see first page for formula) and what is the GDP calculation. 1. Econland is a small nation. Its population total is 1,000, and it has 600 wage earners who earn an average of $200 per year. Each wage earner spends a total of $175 per year buying goods and services of which $10.00 goes to buying imported goods. The nation exports a total of $10,000 worth of goods. The Government tax rate is 20% and all government money is spent on building infrastructure and supporting schools. There is only one industry (computer assembly) in the nation and it employs every wage earner. The industry spends $1,500 each year on new computer equipment. What is your consumer spending (C)? What is your investment (I)? What is your government spending (G)? What is your export income (X)? What is your import cost (M)? What is the GDP? 2. Hogwarts is a small nation. Its population total is 500, and it has 300 wage earners who earn an average of $100 per year. Each wage earner spends a total of $90 per year buying goods and services of which $5 goes to buying imported goods. The nation exports a total of $2000 worth of goods. The Government tax rate is 10% and all government money is spent on building infrastructure and supporting schools. There is only one industry (magical products) in the nation and it employs every wage earner. The industry spends $900 each year on magic wands. What is your consumer spending (C)? What is your investment (I)? What is your government spending (G)? What is your export income (X)? What is your import cost (M)? What is the GDP? CALCULATING UNEMPLOYMENT RATE: For each of the questions, identify the number of people unemployed, the number of people employed, and what the unemployment rate would be using the unemployment rate formula (see page 1). 'I. In July 2023, 250,075 thousand of US residents were employed and 45,1 1 5 thousand were unemployed. Find the unemployment rate for July 2023. # of people unemployed # of people employed- Unemployment Rate- The country of Catan has a total adult population of 3 million, and of these 90,000 are currently out of work and actively searching for new employment. A further 1 million are not working because they are retired, institutionalized, or simply choose not to work. Finally a total of 50,000 citizens are currently enlisted with the Catan military. # of people unemployed # of people employed- Unemployment Rate- The country of Tatooine has a total adult population of 10 million, and of these 7 million are employed. A further 2.5 million are not working because they are retired, institutionalized, or simply choose not to work. Finally a total of 250,000 citizens are currently enlisted with the Tatooine military. # of people unemployed # of people employed- Unemployment Rate