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Gdp In Macronia

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a. What is the value of GDP in Macronia? We can measure GDP in Macronia as the sum of all spending on domestically produced final goods and services. Spending consists of consumer spending, investment spending, government purchases of goods and services, and exports less imports. ($510+$110+$150+$50-$20)= $800 b. What is the value of net exports in Macronia? Net exports are exports minus imports. In Macronia, the net export is equal to ($50-$20)= $30 c. What is the value of disposable income (i.e. income received by households less taxes plus government transfers) in Macrona? Disposable income is income received by households less taxes plus government transfers. In Macronia, disposable income equals to ($800-$100+$10)= $710 D Does the total …show more content…

Compute unemployment rates in the different regions of the country in April 2013 and April 2014. The unemployment rate in different regions of the country April 2013 April 2014 Northwest: (2,174.4/28,407.2)*100=7.654397 (1,781.3/28,288.9)*100=6.296816 South: (4,089.9/56,787.8)*100=7.202075 (3,363.8/57,016.4)*100=5.899706 Midwest: (2,473.7/34,320.0)*100=7.20775058 (2,109.0/34,467.0)*100=6.118896 West: (2,940.8/36,122.2)*100=8.14125385 (2,535.7/36,307.3)*100=6.983994 d. What can you infer about the fall in unemployment rates over this period? Was it caused by a net gain in the number of jobs or by a large fall in the number of people seeking jobs? Unemployed (thousands) April 2013 April 2014 2,174.4 1,781.3 4,089.9 3,363.8 2,473.7 2,109.0 2,940.8 2,535.7 The decline in the unemployment rate can be attributed to the fact that there was an overall decline in the number of unemployed people in each of these regions. This can be confirmed from the numbers in the tables. 4. Unemployment Issues in Japan Explain the like effect of the breakdown of the job-for-life system in Japan on the Japanese natural rate of …show more content…

Is the likely cause of the change in the unemployment rate during this period a change in the natural rate of unemployment or a change in the cyclical unemployment rate? The likely effect of the rise in the real GDP in Japan would be to decrease the unemployment rate in the economy. With a higher rate of economic growth, there are more opportunities and demand in the economy due to which there will be a higher rate of employment and thus the existing rate of unemployment will decrease. The change in the unemployment rate during this period is a result of both, the change in the natural unemployment rate during the period as well as a change in the cyclical unemployment rate that prevails in the economy. This is because the change in the real GDP in the economy leads to change in both the factors: the natural rate of unemployment as well as the cyclical

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