Equations

Question 1

Nominal GDP

Answer 1

Price * quantity ( select period of time)

Question 2

Real GDP

Answer 2

Price ( base) * quantity

Question 3

GDP Deflator

Answer 3

NGDP/RGDP * 100

Question 4

Inflation

Answer 4

GDPdef2-GDPdef1/ GDPdef1 * 100 (% change GDP)
or
% Change CPI

Question 5

Unemployment Rate

Answer 5

of employed individuals/labor force * 100

Question 6

Labor Force Participation Rate

Answer 6

Labor Force/ WAP * 100

Question 7

employed population Ratio

Answer 7

employed/ WAP * 100

Question 8

Real Wage

Answer 8

Nominal Wage/price level (CPI or GDP def) * 100

Question 9

3 types Unemployment

Answer 9

1. Frictional Unemployment
2. Structural Unemployment
3. Cyclical Unemployment

Question 10

3 Types of Approaches measuring GDP

Answer 10

1. Spending Approach (C+I+G-NX)
2. Investing Approach
3. Production Approach

Question 11

Spending Approach

Answer 11

C + I + G - NX

C= 70% I=17% G=14%

Question 12

Potential GDP

Answer 12

long term trend of GDP given available resources