1st Semester 2021-2022

ECON 11 General Economics Recitation

PROBLEM SET #8

ECON 11 U-5R

4 Sisters and a Reporting

Geronda, Diana Jane Empis

Gudao, Kasandra Ortezze B

Lacson, Jenina Audi Mabilangan

Lauresta, Andrea Marie L

Magdaleno, Nel Benjamin

 Recitation Section: U-___
ECONOMICS 11 - General Economics Group Name:
Problem Set 8. Macroeconomic Indicators Name of Student:

Use the information below to answer the questions in this activity. Show your complete
solutions. (5 points each)

Year: 2018
Value added of agriculture, fishery and forestry sector, in thousands of pesos
(VA_A) 1,762,616
Value added of industry sector, in thousands of pesos (VA_I) 5,582,525
Value added of service sector, in thousands of pesos (VA_S) 10,920,048.47
Household Final Consumption Expenditure, in thousands of pesos (C) 13,250,084
Gross Domestic Capital Formation, in thousands of pesos (I) 4,909,105
Exports, in thousands of pesos (X) 5,518,573
Net Primary Income from the Rest of the World, in thousands of pesos
(NPIRW) 1,940,973
CPI (base year: 2012) 117.30
Government Final Consumption Expenditure, in thousands of pesos (G) 2,199,637
Statistical Discrepancy, in thousands of pesos (SD) 50,000.26

Year: 2019
Value added of agriculture, fishery and forestry sector, in thousands of pesos
(VA_A) 1,722,211.13
Value added of industry sector, in thousands of pesos (VA_I) 5,887,238
Government Final Consumption Expenditure, in thousands of pesos (G) 2,444,698
Household Final Consumption Expenditure, in thousands of pesos (C) 14,288,140
Imports, in thousands of pesos (M) 7,858,660
Exports, in thousands of pesos (X) 5,530,950
Statistical Discrepancy, in thousands of pesos (SD) 0
Growth Rate, Gross Domestic Product at current prices 6.85%
Gross National Product at current prices, in thousands of pesos (GNP) 21,463,514.52
CPI (base year: 2012) 120.20
GDP Deflator (base year: 2018) 100.76
Population, 15 years old and over, in thousand persons (labor force) 72,933
Population, below 15 years old, in thousand persons 28,240
Population, 15 years old and over not included in the labor force, in thousand
28, 240
persons
Labor force employed 94.93%
Question 1. What is the nominal GDP and GNP for year 2018?

GDP = VA_A + VA_S + VA_I

= 1,762,616 + 5,582,525 + 10,920,048.47 = 18,265,189.47 pesos

GNP = GDP + NPIRW

= 18,265,189.47 + 1,940,973 =20,206,162.47 pesos

Question 2. How much were the imports in 2018?

STEP 1) GDP expenditure approach = C + G + I + X – (M, imports) + SD

GDP expenditure approach + (M) = C + G + I + X + SD

= 13,250,084 + 2,199,637 + 4,909,105 + 5,518,573 + 50,000.26

= 25,927,399.26 pesos

STEP 2) GDP expenditure approach – GDP value added approach = 2018 imports

25,927,339.26 pesos - 18,265,189.47 pesos = 7,662,209.79 pesos

The 2018 Imports amount to 7,662,209.79 pesos

Question 3. What is the nominal GDP for year 2019?

Growth Rate = [(x – GDP2018)/GDP2018] x 100, x = GDP2019

6.85 = [(x – 18,265,189.47)/ 18,265,189.47] x 100

0.0685 x 18,265,189.47 = x - 18,265,189.47

1,187,237.316 + 18,265,189.47 = 19,516,354.95 pesos

The 2019 nominal GDP is 19,516,354.95 pesos

Question 4. What is the value added of the service sector in 2019?

GDP = VA_A + VA_S + VA_I

19,516,354.95 pesos = 1,722,211.13 + x + 5,887,238

19,516,354.95 pesos = x + 7,609,449.13

 19,516,354.95 pesos – 7,609,449.13 = x = 11,906,905.82 pesos

The value added of the service sector in 2019 is

11,906,905.82 pesos

Question 5. How much were the investment expenditures in 2019?

GDP expenditure approach = C + G + (x, I) + X – (M, imports) + SD

19,516,354.95 = 14,288,140 + 2,444,698 + x + 5,530,950 - 7,858,660 + 0

x = 19,516,354.95 - 14,288,140 - 2,444,698 - 5,530,950 + 7,858,660

x = 5,111,227 pesos = investment expenditure

The investment expenditures (I) in 2019 is

5,111,227 pesos

Question 6. What is the per capita GDP in 2019?

GDP per capita 2019 = GDP2019 / population; population (2019) = 72,933 + 28,240 = 101173

= 19,516,354.95 / 101173 = 192.9008228 ~ 192.90

The GDP per capita in 2019 is ~192.90

Question 7. What is the real GDP in 2019?

GDP real, 2019 = (GDP nominal, 2019 / GDP deflator) x 100

= (19,516,354.95 / 100.76) x 100

= 19,369,149.41 pesos

The real GDP in 2019 is 19,369,149.41 pesos

Question 8. How much was the net primary income from the rest of the world in 2019?

GNP = GDP + NPIRW

NPIRW = GNP – GDP

= 21,463,514.52 - 19,516,354.95 = 1,947,159.57 pesos

The NPIRW of 2019 is 1,947,159.57 pesos

Question 9. What is the unemployment rate in 2019?

Labor force = 72, 933 – 28, 240 = 44,693 people

Unemployed = 100% - 94.93% = 5.07% of 44,693 = 2,265.9351 people

Check:

Unemployment rate = (unemployed/labor force) x 100

= (2,265.9351 /44,693) x 100

= 5.07%

The employment rate in 2019 is 5.07%

Question 10. How fast was the increase in the general price level in 2019?

Inflation rate = (Pt – Pt-1 / Pt-1) x 100; Pt = 120.20, Pt-1 = 117.30

= (120.20 – 117.30 / 117.30) x 100

= 2.472293265 ~ 2.47%

The increase in general price level from 2018 to

2019 was at a rate of 2.47%