Question

The Data of Macroeconomics- End of Chapter Problem According to the Bureau of Economic Analysis (BEA), real gross domestic product (GDP) increased at an annual rate of 2.3 percent in the first quarter of 2018. This contrasts with the fourth quarter of 2017, when real GDP increased by 2.9 percent. According to the Bureau of Labor Statistics (BLS), the consumer price index (CPI) increased by 2.1 percent in 2017. This is the same as the rate of price inflation observed in 2016 The BLS also reports that the unemployment rate for April of 2018 fell to 3.9%, which is the lowest rate of unemployment since December of 2000. Use these data about the recent performance of the U.S. economy to classify each of the following statements as true or false True False

Answer 1

True: b.In early 2018, the real output has certainly increased and unemployment is at record low level of 3.9% since the year 2000.

c. Growth of real output which was. 2.3 % in last quarter of 2017 was 2.1% in first quarter of 2018 hence. the growth rate has slowed down.

d. Discouraged workers are those who leave labor force for education or skill updation It is possible that unemployment figure is low due to this factor too.

False:

a. CPI increase by 2.1 % in 2017 only includes a certain goods and services considered in calculation basket. It does not mean that all domestic products and services prices rose.