Problem Set 2

Posted on by

Navigation   » List of Schools, Subjects, and Courses  »  Econ 102 – Principles of Macroeconomics  »  Quizzes  »  Problem Set 2

With Answers  Good news! We are showing you only an excerpt of our suggested answer to this question.  Should you need our help in customizing an answer to this question, feel free to send us an email at or chat with our customer service representative.

Problem Set 2

Question

Problem Set 2

 

  1. The price of boba drinks rises from $4.60 to $4.80. Quantity demanded changes from 200 drinks to 180 drinks. Calculate the elasticity and explain the results.

 

  1. The following table displays data on Italy. Prices are in trillion USD $.
Nominal and Real GDP

Year

Nominal GDP

Real GDP

(in 2010 USD)

GDP deflator

2012

2.087

 

100

2013

2.141

2.047

 

2014

 

2.047

105.5

2015

1.836

 

89

2016

 

2.089

89.8
    1. Fill in the missing values
    2. Calculate GDP growth between 2012 and 2013 (use real GDP). Did Italy’s GDP grow or contract?
    3. Calculate GDP growth between 2013 and 2014
    4. Calculate inflation rate between 2013 and 2014
    5. Between 2013 and 2014, the nominal GDP rose, but real GDP stayed the same. Why? (Hint: think about the results from part C and part D)
    6. Calculate GDP growth rate between 2015 and 2016
    7. Using the growth rate from part F, calculate the future value of Italy’s GDP in 10 years.

 

  1. In November 2019, Greece had 3,438,100 employed and 335,600 unemployed.
    1. How many people are in the labor force?
    2. The labor force participation rate is 51%, what is the population of adults in Greece?
    3. What is the unemployment rate in Greece?
    4. What are some reasons the unemployment rate in Greece is so high?

Need help with your discussion preparation?


Existing Clients Login here
This question is taken from Econ 102 – Principles of Macroeconomics » Spring 2022 » Quizzes