6)  What are price indexes designed to measure?  Out-line how they are constructed.  When GDP and
other income figures are compared across time periods, explain why it is
important to adjust for changes in the general level of prices. 

15)  The accompanying chart presents 2010 data from the national-income accounts of the United

A)  Indicate the various components of GDP when it is derived by the expenditure approach.

B)  Indicate the various components of GDP when it is derived by the resource cost-income
approach.  Calculate GDP using the resource cost-income approach.


Is the natural rate of unemployment fixed?  Why or why not?  How are
full employment and the natural rate of unemployment related?  Is the
actual rate of unemployment currently greater or less than the natural
rate of unemployment?  Why? 

9)  What impact will high and variable rates of inflation have on the economy?  How will
they influence the risk accompanying long-term contracts and related business

The following Table B presents the 2010 population, employment, and
unemployment data among working age person for several countries.

A)  Calculate the number of people in the labor
force for each country. 

B)  Calculate the labor force participation rate
for each country, and put the figures in the blanks provided. Which country had the lowest?

C)  Calculate the unemployment rate for each
country, and put the figures in the blanks provided.  Which country had the highest unemployment
rate?  Which had the lowest? 

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