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Define and explain unemployment

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Question 1
A. Define and explain unemployment (10 points)

2014

2015

Population

224

227

168

170

#Unemployed

7

8

# Employed

105

104

B. From the given data above calculate and explain unemployment rates for 2014 and 2015(10 points)

Assessment Codes CT, WC, EQS

Given the national income (NI) data below (ALL figures are in billions of dollars) compute:

C. National Income (NI) (10 points)

National Income data

AMOUNT
Personal consumption
\$9,269
Compensation of Employees (Wages and salaries)
\$7,489
Gross private DOMESTIC INVESTMENT
\$2,212
Government purchases of goods and services
\$2,527
Corporate profits
\$1,616
Depreciation
\$1,576
Exports
\$1,466
Imports
\$2,229
Proprietors’ income
\$1,015
Sales taxes
\$913
Interest
\$509
Rent
\$77
Miscellaneous
\$47

Inflation data

Year
Price of
Books \$
Quantity of Books
Price of Pencils \$
Quantity of Pencils
Price of Pens \$
Quantity of Pens
2011
\$50
10
1.00
100
\$5
100

2012
\$50
12
1.00
200
\$10
50

2013
\$60
12
1.50
250
\$20
20

The Inflation data above shows the prices and the quantities consumed in a college bookstore. Using 2011 as the base year

Calculate the inflation rate between 2012 and 2013 using the CPI approach.
D. Calculate inflation using the GDP deflator index and explain why consumer price index (CPI) overstates inflation when compared to inflation rate determined by using GDP deflator (15 points)

Assessment Codes CT, WC, EQS

Question 2.
Using data from Bureau of Labor Statistics (BLS) Tables 2 and 3 in the months of August
2015 Seasonally Adjusted, compare and contrast Labor force participation rates (LFPR)
of four demographic groups: Whites, African –American, Asian and Hispanic.
Evaluate and discuss the differences in their LFPR (25 points)

Assessment Codes CT, WC, EQS

Question 3
Different societies view unemployment differently. Some view it as a social ill and others as an economic problem. In 250 words discuss how unemployment is viewed in your culture. Compare and contrast unemployment remedies of your culture with that of any other culture. Cite your work. (30 points)

Assessment Codes WC, SR