Homework 1

Econ 110

Due Thursday, October 8

 

(1)   The unemployment rate for September will be released on Friday, October 2 by the Bureau of Labor Statistics www.bls.gov   Find this rate.  

 

 

(2)   What are the three macro goals and the two micro goals?

 

(3)     Over the last year, which directions have unemployment, inflation, and GDP been moving?

 

 

(4)   What is the main difference between the Keynesian and Classical view of the role of government in a market economy?

 

 

(5)   Do problem 2 on page 18 of the book.

 

(6)   Do problem 10 b on page 19 of the book.

 

(7)   Do problems 11a, b, and d on page 19 of the book.

 

 

(8)   If a country produces the following items during the year, calculate GDP.

 

Item	Quantity	Price	Market Value (Quantity x Price)
Cars	10	$20,000
Computers	100	$1,000
Books	1,000	$10
GDP =

 

(9)   If consumption is $10 trillion, investment is $2 trillion, government purchases are $3 trillion, exports are $2 trillion and imports are $3 trillion, calculate GDP.