StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Macroeconomics EC 211 - Assignment Example

Comments (0) Cite this document
Summary
Inflation rate as measured by the GDP deflator shows the rate of price change in the whole economy combined (FIU, nd).
CPI which is the…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.2% of users find it useful
Macroeconomics Assignment EC 211
Read TextPreview

Extract of sample "Macroeconomics EC 211"

Macroeconomics Assignment EC 211 QUESTION ONE - PERCENTAGE GROWTH IN NORMINAL AND REAL GDP for the years 1991 – 1997 YEAR Real GDP (in billions of Dollars per Year)
Nominal GDP (in billions of Dollars per Year)
% Growth in Real GDP
% Growth in Nominal GDP
U.S. Population (in Millions)
Real GDP per Capita
1990
6,136.3
5,743.8
---
----
249.9
24,555.02
1991
6,079.4
5,916.7
-0.9%
3%
252.6
24,067.3
1992
6,244.4
6,244.4
2.7%
5.5%
255.4
24,449.49
1993
6,389.6
6,558.1
2.3%
5%
258.1
24,756.3
1994
6,610.7
6,947.0
3.5%
5.9%
260.6
25,367.2
1995
6,742.1
7,255.4
1.9%
4.4%
263.0
25,635.36
1996
6,928.4
7,636.0
2.8%
5.2%
265.5
26,095.66
1997
7,191.4
8,083.4
3.8%
5.9%
267.9
26,843.59
Real GDP per Capita is the Total GDP dividend by the whole population of the country.
GRAPH
THE GRAPH OF THE % Growth in Real GDP AND % Growth in Nominal GDP FOR THE YEARS 1991 - 1997
QUESTION TWO
Figure 1THE RELATION BETWEEN THE UNEMPLOYMENT RATE AND THE % CHANGE IN THE REAL GDP FOR THE YEARS 1981 -1995
QUESTION 3
1. What was the inflation rate as measured by GDP deflator in 2002 and 2003
The inflation rate = (current Year’s GDP Deflator – Previous Year’s GDP Deflator)/ Previous Year’s GDP Deflator x 100
2002 - (103.9 – 102.4) / 103.9 X 100 = 1.44%
2003 - (105.7 – 103.9) / 105.7 X 100 = 1.70%
2. Description of the inflation rate based on GDP deflator
The GDP deflator is the price index that is used to measure the market basket that is made up of a group of goods that make up the GDP. Inflation rate as measured by the GDP deflator shows the rate of price change in the whole economy combined (FIU, nd).
3. Description of the inflation rate based on CPI
CPI which is the Consumer Price Index is used to indicate the changes that takes place in the retail prices of the selected commodities and services which a common group of people uses or purchases. Thus the index is used to reflect changes in the final prices of the key commodities and services that are consumed by a substantial number of peoples in a selected market or community. Inflation rate is the rate of the changes of the prices of the consumer goods (FIU, nd). The calculation of the inflation based on the CPI is where the inflation rate is tabulated based on the changes in the prices of the key commodities or the commodities that are used or purchased by the majority of the population.
References
Florida International University, FIU, Practice Problems for Calculation of Real GDP, Real Income, CPI and GDP Deflator, nd. Web. 6 March. 2013. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Macroeconomics Assignment EC 211 Example | Topics and Well Written Essays - 500 words”, n.d.)
Retrieved from https://studentshare.org/miscellaneous/1617058-macroeconomics-assignment-ec-211
(Macroeconomics Assignment EC 211 Example | Topics and Well Written Essays - 500 Words)
https://studentshare.org/miscellaneous/1617058-macroeconomics-assignment-ec-211.
“Macroeconomics Assignment EC 211 Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/miscellaneous/1617058-macroeconomics-assignment-ec-211.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Macroeconomics Assignment EC 211

Macroeconomics

...is (422,905 - 460,665) = -37760. The amount of trade deficit is 2009 is (422,905 - 460,665) = -32023. iv. The value of real GDP in 2009 is (Nominal GDP of 2009/GDP deflator of 2009) = ? (1,373,636/ 101.4) million = ?13546.71 million. v. The current macroeconomic situation of the UK can be defined as economic recession. So, there has been no surprise that the economy has experienced a negative rate of growth form 2008 to 2009. The fall in consumption spending, investment, and net exports (exports minus imports) can be explained by the prevalence of ongoing economic recession which cause fall in demand. The rise in government expenditure can also be explained by the current macroeconomic situation. In...
4 Pages(1000 words)Assignment

Social Policy Development Pertaining to Education in India

10 Pages(2500 words)Essay

Macroeconomics

..., Graham; Willett, Thomas D. Currency Wars. World Economics 12.4 (2011): pp. 121- 136. Print. Lachman, Desmond. Can Emerging Markets Be the World's New Locomotive? International Economy 24.2 (2010): pp. 64-66. Print. Rapoza, Kenneth. “In Global Currency War II, Shots Fired Over India”. Forbes, 6Nov, 2013. Web. 19 Dec, 2013< http://www.forbes.com/sites/kenrapoza/2013/06/11/in-global-currency-war-ii-shots-fired-over-india>. Semmler, Willi .The Macroeconomics of Austerity in the European Union. Social Research 80.3 (2013): pp. 883-914.Print.... To which extent can we count on emerging countries to boost the world economy? At present, the global economy cannotrely on the emerging countries to improve the world’s economy. In the last two years,...
3 Pages(750 words)Assignment

Asian Philosophy

2 Pages(500 words)Essay

Macroeconomics

...evidence has supported the prediction. Take the example of the 1964 tax cut. In 1964 tax rates were cut in order to stimulate the economy. The effect was a rise in GDP of .7 percent from 5.3 percent in 1964 to 6.0 percent in 1965 and a drop in unemployment from 5.2 percent to 4.5 percent in 1965. In 1968 a temporary tax surcharge was used in an attempt to cool the economy. The surcharge was meant to offset the demand created by government war spending by lowering consumption. Despite the surcharge inflation continued and the economy continued adding jobs. The temporary change failed to have an impact while the permanent tax cut resulted in significant effects upon consumption. Works Cited Mankiw, N. Gregory....
4 Pages(1000 words)Assignment

MACROECONOMICS

...Macroeconomics Question two Aggregate demand Aggregate demand refers to the demand that is attainable and the marketcan very comfortably meet it. In this, the demand must be very equal to the supply. Aggregate demand, Z = C-Y/G However, C= 200+0.6(Y-T) = 200+ 0.6Y- 0.6T SI relation The Si relation refers to how the demand meets the supply vice versa. There can be one effective trade if the two are not concurrent. The demands introduces more money into the market while the supply brings either the good or service into the economy. (M/P)^d= 2Y-800i= SI relation. Should the bank decide to increase the nominal money supply to 1800, there are a number of aspects of the money market that get affected. The equilibrium...
6 Pages(1500 words)Assignment

Assignment ec 410

... ASSIGNMENT EC 410 Part A: Outsourcing Questions a). Homes outsourced production activities will be higher on the value chain for a given product. Therefore, Homes will outsource production activities that are skilled-labor intensive because it will be cheaper than in the domestic market. b). Increasing tariffs level may discourage imports making the goods and services outsourced to decreased. The slicing of the value chain will cause a shift towards the right. Further, the value of goods and services outsourced tends to reduce. c).Supply and demand curves Home supply foreign supply Wages wages... ASSIGNMENT EC 410 Part A: Outsourcing Questions...
1 Pages(250 words)Assignment

Intermediate macroeconomics

...Intermediate macroeconomics Business cycle refers to the fluctuations in the economic activities taking place in the economy over a period of time. Business cycle undergoes four basic stages namely recession, trough, recovery and peak or boom. Recession refers to periods of contracting economic activities characterized by low production and unemployment level. Trough is a period of stagnant economic growth. Recovery is the above-average economic growth period while the peak marks the highest level of economic growth in which the economy is at full employment. NBER defines recession as a significant decline in economic activities over a given period of less than few months expressed in real GDP or income level. The cycle...
1 Pages(250 words)Assignment

Macroeconomics

...Macroeconomics By a. The contractionary gap refers to an economy that has not reached full employment equilibriums. Given that the labor resource is underutilized, there is a low level of gross domestic product in such an economy. After the fall in the planned investment results to an increase in the contractionary gap that is similar to the multiplier. b. To be able to restore the economy to full employment; the government must find ways that it promotes local businesses. When local businesses experience a high demand from their products they increase their labor requirement so that they can maximize the output. The government therefore has to increase their purchases of these products to the same amount as that planned...
1 Pages(250 words)Assignment

Macroeconomics

...Problem A With respect to the increase in smartphone prices from $200 to$222, there was a need to increase the supply from 10,000 units to 12,000 units. In that regard, the elasticity of supply becomes an important case to consider. After application of the case into the model for finding elasticity and in this case from the calculation of elasticity and using the prices and quantities provided, the result is that the Elasticity of supply is 1.7. It is an indication of that the stretch is by 1.7 hence a positive indicator. This shows that the supply is elasticity and hence can be considered by the company as a way to increase on the revenue stream. Problem B Public and private goods Human being depends on goods and services... A With respect ...
2 Pages(500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Assignment on topic Macroeconomics Assignment EC 211 for FREE!

Contact Us