Gross Domestic Product Unemployment

INSTRUCTIONS: You are to watch the two videos on YouTube (see below) related to Gross Domestic Product Unemployment and Business Cycle. After you are done watching the two videos turn in the weeks assignment by answering the following questions thoroughly and in details. You may need to use other materials instead of just the information presented in the two videos. It is important to be as thorough as possible and be creative. Be sure to save your assignment prior to submitting it on Canvas. As a reminder be sure to submit it before the assignments due date and time and do not submit it to me via regular e-mail. No exception! No late assignment will be accepted……. The 27-point assignment must be typed and double-space. It is important you spend quality time in this assignment and be as thorough as possible. I will deduct 5 points from the assignment if the assignment is not “double-spaced.”

1. Definition of GDP and describe the four key components that make-up GDP

2. Differences between nominal and real GDP

3. Under what 3 reasons might a person be classified as “underemployed?”

4. Different types of unemployment

5. Can the economys overall rate of unemployment be at zero percent? Be sure to explain in details why not.

6. What does it mean when the economy is at “full employment?”

7. Define business cycle and what are the four phrases of the business cycle? How does the rate of unemployment be different at each stage of the business cycle?

8. Out of the four key components that make up GDP which one is influenced the most by disposable income (after-tax income) and be sure to explain why?

9. Given the following macroeconomic data for the years 2014 2015 and 2016; and using 2015 as a base-year: 2014 2015 2016P Q P Q P QCOFFEE $0.75 50 $0.95 75 $1.15 80SHOES $15 60 $17 65 $20 70 Compute the rate of Real GDP growth rate between 2015 and 2016.

All steps must be shown logically and there will be no partial credits for this mathematical problem.

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