If the number of unemployed equals 30,000, the number of employed equals 60,000, and the number not in the labor force is 10,000, the labor-force participation rate __________________.

Essay Question (1). Refer to the information provided in Table 3 below to answer the questions that follow.                                                          Table 3   $Billions Federal government’s purchases of goods 1000 Services 600 Imports 250 Change in business inventories 40 Durable goods 250 Nondurable goods 650 Exports 150 Residential investment 150 State and local governments’ purchases of goods 350 Nonresidential investment 750

If nominal GDP is $20 trillion and real GDP is $12.5 trillion, the GDP deflator is _______. 

Essay Question 2.a Refer to Table 4. Compute the values of this economy’s nominal GDP in years 1.

Part I. Multiple Choice Questions (Choose the one that best completes the statement or answer the question.) (Each question worth 3 points)

Refer to Table 2. In this economy, a contraction existed around the _________.

The reasons to study economics include which of the following?

Refer to Table 2. In this economy, an expansion existed around the ________.

By not counting the value of intermediate goods when calculating GDP, you avoid ________.

Essay Question 2.b Refer to Table 4. Assume year 2 is the base year (that means the price in year 2 is the constant price). Compute this economy’s real GDP in years 1.