Question

Shitis AD Curve to the left to AD 1 con Pom model to illustrate what has happened to the economy sin U te unemployment rate STICE 201J! UJU et unemploymeriéconomy was at full employment in 2015. From this initial cond ppened to the economy since 2015/Assume the as increasa, aggregate demand curve to sh yment in 2015. From this initial condition, draw a new nand curve to show how the economy has changed. Describe how the -ow it's slowly level, new equilibrium is different from the old one both in terms of price level and output a ball to AD in demand Shifts, ecreasing. This leads to a fall in price from P . P. and a fall in output or real ADP from loy. This situation is known as recessionary Tal, as the economy is produri holow its full employment level of cutout 2. Some business interests are concerned about the lack output. Cerit quta S are concerned about the lack of sales and profits during this a time and argue that it is time to eng time and argue that it is time to engage in strong trade restrictions including tarifs not help the and quotas against foreign products. Would adding trade restrictions help the ci nemployment industries unemployment situation? Why or why not? make protection nation to improve, because tarrif quota will be inefficient. It'll make consumers pay higher prices, and more disposable undaitries will spent industries. But thes on these goals of the protection reciering Se demand. A few economists in Gatoria are more concerned with economic growth. Fill out the l a tollowing table and use the data to calculate how much (in percentage terms) has the real GDP per capita changed in Gatoria from 2015 to 2018. Given what we know about is happening in short run from Question 1. why might focusing on improving ll make the long-run economic growth NOT be a good idea right now? employment Nominal GDP Pop (in Real GDP Per GDP in tuation Worse Year Real GDP Deflator millions) Capita billions) and the 2015 $600 140 $520 120 2017 $550 125 ate w ill / 2018 $610135 52 2016 | 54 Comployment 56 56 crease! Good. A Price 159) Price of - Exports demand & Imports / Exporta

need this done asap, pls!

Answer 1

We know that GDP deflator = NGDP/RGDP * 100

so, RGDP = NGDP/GDP deflator * 100

Real GDP per capita = Real GDP/Population

Using these we fill up the fourth and last column in the table below.

Year	Nominal GDP (in billions)	GDP deflator	Real GDP	Pop (in millions)	Real GDP per capita
2015	600	140	429	52	8.2
2016	520	120	433	54	8.0
2017	550	125	440	56	7.9
2018	610	135	452	56	8.1

Change in RGDP per capita from 2015 to 2018 = (8.1-8.2)/8.2 * 100 = -2.1%

So, RGDP per capita has decreased by 2,1%