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Assignment Task:

This assignment relates to the following Course Learning Requirements:

CLR2: Define the different types of unemployment in the economy, and analyze the economic factors that influence unemployment.

Discussion Questions: 

  • Discuss the different types of unemployment that exist in the economy.
  • Explain what is participation rate in the labor force?
  • How much does the labor force participation rate affect the unemployment rate?
  • Do you think one type of unemployment is worse than others and why? 
  • What can governments do to assist in reducing this type of unemployment?

Calculations:

Table 1.0 below provides nominal GDP, real GDP and GDP deflator data. 

(a) Complete Table 1.0 

(b) What is the base year for the GDP deflator? 

(c) Calculate the percentage change in nominal GDP, real GDP, and the GDP deflator between 2014 and 2015. 

(d) Was the increase in nominal GDP due mostly to an increase in real GDP or to an increase in the price level?

 

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