If in 1994 nominal GDP is 600 and real GDP is 500, then what is the GDP deflator for 1994?
GDP deflator= (NGDP/RGDP)*100
=(600/500)*100
=120
 Suppose that nominal GDP is $566 billion in 1992, $600 billion in 1993, and $642 billion in
1994. If 1992 is the base year, the price index is 105 in 1993, and real growth in 1994 is 3
percent, what is the price index in 1994?
Price index=(NGDP/RGDP)*100
Real GDP growth=3%

The BLS reported the following data for February 2017:Labor force participation rate : 63
percentWorking age population :254 millionEmployment to population ratio : 60Calculate
Labor force, Employment and Unemployment rate.
LFPC=(LF/WAP)*100
63%OR 63=(LF/254M)*100

The BLS reported the following data for February 2017:Labor force: 160 million Employment:
152 millionWorking age population:254 million Calculate Unemployment rate, Labor force
participation rate and Employment to population ratio
Unemployment rate=(160-152/160)*100
=5%
Labor force participation rate= LF/WAP
=(160/254)*100
=62.992%
Employment To population Ratio= (employe/Wap)*100
=(152/254)*100
=59.8%
Suppose that the population over age 15 is 150 million, the number of discouraged workers is
5 million, the participation rate is 70 percent, and the unemployment rate is 10 percent. How
many officially unemployed are there?
The BLS reported the following data for February 2017:Labor force participation rate : 63
percentWorking age population :254 million Employment to population ratio : 60Calculate
Labor force, Employment and Unemployment rate.

LFPR=(LF/WAP)*100
63=(LF/254)*100
100LF=254*63
LF=(254*63)*100
=160.02(Labor force)
Employment to population ratio=(employee/WAP)*100
60=(employee/254)*100
employee=(254*60)/100
=152.4(Employment)
Unemployment rate=Unemployment/ labor force
=((160.02-152.4)/160.2))*100
=4.8%
6. Suppose that nominal GDP is $566 billion in 1992, $600 billion in 1993, and $642 billion in
1994. If 1992 is the base year, the price index is 105 in 1993, and real growth in 1994 is 3
percent, what is the price index in 1994?
RGDP(1993)=(600/105)*100
=571.4
Suppose RGDP 1994 =x
RGDP GROWTH RATE=(RGDP1994-RGDP1993)/RGDP1993
3=((x-571.4)/571.4))*100
(x-571.4)*100=3*571.4
x=531.4
price index 1994=(NGDP/RGDP)*100
=(642/531.4)*100
=120.8

7.Suppose that the population over age 15 is 150 million, the number of discouraged
workers is 5 million, the participation rate is 70 percent, and the unemployment rate is
10 percent. How many officially unemployed are there?
LFPR=(LF/Population)*100
70=(LF/150)*100
LF=105
Unemployed=105*10%
=10.5 millon

GDP deflator= (NGDP/RGDP)*100

=(600/500)*100
=120
8 Suppose that the population over age 15 is 25 million , the participation rate is 80 percent,
the number of discouraged workers is 1 million , the number of people with full-time jobs is 16
million, and the number of people with part-time jobs is 2 million. What is the measured
unemployment rate?
unemployment rate =(unemployed/LF)*100
=((2 million/(2 million+16 million))*100
=11.11%