Question

need explanations.

1) For this question, assume that 1980 is the base year. Given macroeconomic conditions in the United States over the past three decades, we know that A) real GDP and nominal GDP were equal in 1980. B) nominal GDP is always smaller than real GDP since 1980. C) real GDP and nominal GDP would be equal for the entire period. D) real GDP is larger than nominal GDP from 2002 to 2008. E) none of the above 2) In a given year, suppose a company spends $100 million on intermediate goods and $200 million on wages, with no other expenses. Also assume that its total sales are $800 million. The value added by this company equals A) $800 million. B) $700 million. C) $500 million. E) $200 million. Use the information provided below to answer question 3) and 4). Suppose a country using the United States' system of calculating official unemployment statistics has 100 million people, of whom 50 million are working age. Of these 50 million, 20 million have jobs. Of the remainder: 10 million are actively searching for jobs; 10 million would like jobs but are not searching; and 10 million do not want jobs at all. 3) Refer to the information above. The labor force participation rate is A) 2. B).3. C).8. D) 4. 3) E).6. 4) Refer to the information above. The official unemployment rate is A).2. B).66. C).1. D).4. E).33.

Answer 1

1. The answer is A "Real GDP and nominal GDP were equal in 1980"

When we say base year, the Nominal GDP become also real GDP.

2. The answer is C " $ 500 Million Dollars"

Value Added = Value of output - Intermediate goods = 800 - 300 = 500

3. The answer is B "0.3"

Labour Force Participation Rate = Total employed + unemployed / Population * 100

Employed = 20 million

Unemployed = 10 Million

Population = 100 Miilion

so Labour force = 20+10 / 100

= 30 / 100 = 0.3

4. The anwer is E ".33"

The umployment rate = Total unemployed / Labour force

= 10 / 30 = .33