Economic Indicators Review

In 2018, a nation's GDP is $4b with a growth rate of 10%. According to the Rule of 70, when will GDP hit $8b?

• 2028

• 2025

• 2022

• 2019

Cyclical unemployment is characterized as

• unemployment that occurs when people are between jobs.

• a situation when an employee has outdated skills and needs new ones.

• the type of unemployment most associated with recessions.

• frictional unemployment + structural unemployment.

2017 Nominal GDP (base year) = $125

2018 Nominal GDP = $135

2017 GDP Deflator (Price Index) = 100

2018 GDP Deflator (Price index) = 104

What is the real GDP for 2018?

• $125

• $128

• $130

• $133

• Not enough data to determine.

2017 Nominal GDP (base year) = $125

2018 Nominal GDP = $135

2017 GDP Deflator (Price Index) = 100

2018 GDP Deflator (Price index) = 104

What is the growth rate of rGDP?

• -4%

• 4%

• 6%

• 8%

What is 2015's Nominal GDP?

• $420.75

• $426.50

• $448.50

• $474.55

Assume the base year is 2015. What is the real GDP for 2016?

• $426.50

• $448.50

• $474.50

• $491.50

What is the current unemployment rate?

• 3.7%

• 4.1%

• 2.5%

• 4.3%

If inflation exceeds 500%/year, we call that ____.

• galloping inflation

• hyperinflation

• disinflation

• omginflation

"Deflating" GDP allows economists to

• pinpoint inflation due to increased production.

• calculate the rate of inflation facing consumers.

• pinpoint how population growth impacted GDP.

• calculate economic growth based upon increased production.

Total Population = 500

Population over 16 = 400

Labor Force = 350

Unemployed (looking for work) = 15

No job (not looking for work) = 10

What is the current unemployment rate?

• 3.75%

• 4.3%

• 6.3%

• 7.1%