# AP Macro Problem Set 2 Recovered

Satisfactory Essays
Name: _______________________
Team: _______________________

AP Macro Problem Set #2
Unit 2: Measurement of Economic Performance 1. (_____/15)
Article Analysis
Read each of these current articles and identify three different concepts we learned that are mentioned. Define and summarize what is being said for each concept that you identify.
a. GDP Article (_____/5)
b. Unemployment Article (_____/5)
c. Inflation Article (_____/5) 2. ( ____/15 Points)
Gross Domestic Product
a. Define GDP, identify what is not included, define the four components, and give an example of each (_____/5)
b. Explain the difference between nominal GDP and real GDP. Use a simplified numerical example with two different years to show your understanding. (_____/5)
c. If someone told you that the nominal GDP increased by 4% in 2004 explain why you would need two additional pieces of information to conclude that the standard of living for the typical person also increased by 4%. ( ____/5) 3. (_____/10 Points)
Unemployment
a. Define and give examples of the three types of unemployment discussed in class. (_____/5)
b. How is the unemployment rate calculated? What is the Natural Rate of Unemployment? Do we want zero unemployment? (_____/5) 4. (_____/15 Points
) Inflation
a. Define and identify how to calculate the Consumer Price Index (CPI)? Explain the meaning of the following CPIs relative to a base year. Year 1=90, Year 2=100, Year 3=125, Year
4=150. Lastly explain why the percent change in prices from year 3 to year 4 is NOT 25%.
(_____/5)
b. Identify how to calculate nominal interest rates and real interest rates. Assume that you put
\$100 in the bank. Use numeric examples to explain three different scenarios in which your
REAL income falls, stays the same, and increases. (_____/5)
c. If the actual inflation is greater than the anticipated inflation, fully explain who would benefit and who would be hurt and explain WHY? (_____/5) 5.

## You May Also Find These Documents Helpful

• Good Essays

Problem Set 2 Name: __________________________________________ Problem Set 2 is to be completed by 11:59 p.m. (ET) on Monday of Module/Week 4. 1. The following table presents data for wages in the market for internet security professionals. (HINT: in the labor market the roles are reversed. Those who want to hire labor are the demanders. The workers enter the work force providing labor to the market place so they are the suppliers.) Wage Quantity Demanded Quantity Supplied \$50,000…

• 922 Words
• 4 Pages
Good Essays
• Satisfactory Essays

Problem Set 2 Complete all questions listed below. Clearly label your answers 1. What impact would a change that shifts an economy's production possibilities curve outward have on the long run aggregate supply curve? It will cause it to shift right. How have improvements in computer technology affected production possibilities and the long run aggregate supply curve? They have cut the cost of doing business and expanded our production capacity. These types of improvements enhance productivity…

• 250 Words
• 1 Page
Satisfactory Essays
• Powerful Essays

ASSIGNMENT 1 Busn 521: Managerial Economics This assignment is due on Friday Oct 17th, 2014. Problem Set 2 1. Pat and Kris are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Pat takes 4 hours to brew a gallon of root beer and 2 hours to make a pizza. Kris takes 6 hours to brew a gallon of root beer and 4 hours to make a pizza. a. What is each roommate’s opportunity cost of making a pizza…

• 905 Words
• 4 Pages
Powerful Essays
• Good Essays

PROBLEM SET 2 Name: ___________________________________ Problem Set 2 is to be completed by 11:59 p.m. (ET) on Monday of Module/Week 4. 1. The following table presents data for wages in the market for internet security professionals. (HINT: in the labor market the roles are reversed. Those who want to hire labor are the demanders. The workers enter the work force providing labor to the market place so they are the suppliers.) Wage Quantity Demanded Quantity supplied \$50,000 20,000 14,000 \$60…

• 966 Words
• 4 Pages
Good Essays
• Satisfactory Essays

Problem Set 2 Complete all questions listed below. Clearly label your answers 1. What impact would a change that shifts an economy's production possibilities curve outward have on the long run aggregate supply curve? How have improvements in computer technology affected production possibilities and the long run aggregate supply curve? Explain The production of computers becomes easier and hence more units can be produced with the same amount of resources. Aggregate supply curve shifts to the right…

• 294 Words
• 1 Page
Satisfactory Essays
• Satisfactory Essays

Problem Set 2 Complete all questions listed below. Clearly label your answers 1. What impact would a change that shifts an economy's production possibilities curve outward have on the long run aggregate supply curve? How have improvements in computer technology affected production possibilities and the long run aggregate supply curve? Explain Answer: Growth of population and the labor-force participation rate Capital accumulation Improvements in technology 2…

• 320 Words
• 2 Pages
Satisfactory Essays
• Satisfactory Essays

Supervision costs vary with direct labor costs in each department. 1. Calculate the budgeted cost of trophies and plaques based on a single plant-wide overhead rate, if total overhead is allocated based on total direct costs. 2. Calculate the budgeted cost of trophies and plaques based on department overhead rates, where forming department overhead costs are allocated based on direct labor costs of the forming department , and assembly department overhead costs…

• 367 Words
• 2 Pages
Satisfactory Essays
• Good Essays

Problem Set #2 Ec 370 Summer, 2013 Michigan State University M. Naretta 1. Another popular sport on SASN is One-out, Two-base baseball. In this sport there are, obviously, two bases: home and 2nd. The batter hits the ball and runs to 2nd. If he or she (it’s a co-ed sport) gets a hit, then the batter is on second. If it’s an out, then the inning is over and the other team gets to bat. Suppose that it’s a hit. Then the next batter bats with a runner on 2nd base. If that…

• 960 Words
• 4 Pages
Good Essays
• Satisfactory Essays

Problem Set 3 ECON 973 Fall 2012 Fluctuations: Discrete Time Models Ben Brewer 12/10/12 1. a. Given this two-period problem of labor supply maxc1 ,n1 ,c2 ,n2 ln[c1 ] + ln[1 − n1 ] + βln[c2 ] + βln[1 − n2 ] subject to the intertemporal budget constraint c1 [1 + r] + c2 = w1 n1 [1 + r] + w2 n2 Dividing each side by [1+r] for convenience gives c1 + c2 w 2 n2 = w 1 n1 + 1+r 1+r We can solve for consumption and labor supply in each period (c1 , c2 , n1 , n2 ) by ﬁrst setting up the Lagrangian…

• 3310 Words
• 14 Pages
Satisfactory Essays
• Powerful Essays

https://docs.google.com/document/d/1mB_7Hr3jfMiTmld3gn8SXrgl7PM5iHRonYr8mFQ956I/edit AP Macro Module 1 AP Macroeconomics 1.03 1. a) If I go to the beach, the opportunity cost is that I will not be prepared for the exam; likewise, if I study for the exam, the opportunity cost is that I will not be having fun at the beach. b) If I get a job after high school, the opportunity cost is that I will miss out on a college education; likewise, if I go to college, the opportunity…

• 6631 Words
• 27 Pages
Powerful Essays