R Bernanke B
- Macroeconomic policies are government actions designed to affect the performance of the economy as a whole.
Fill out the blanks:
Macroeconomics policies include monetary policy ( ), fiscal policy ( ), and structural policy ( ).
Select one of the following phrases for each blank.
– Determination of the nation’s money supply
– Decisions about the government’s budget
– Influence on the basic structure of and institutions of the economy
Which statement(s) is(are) correct and explain why others are incorrect.
1) Final goods and services are counted in GDP. Intermediate goods and services, which are used up in the production of final goods and services, are also counted in GDP.
2) GDP includes important factors that affect people’s well-being, such as the amount of leisure time available to them, the value of unpaid of volunteer services, the quality of the environment, and quality of life indicators (the crime rate and the degree of economic inequality).
3) The unemployment rate is calculated as the number of unemployed workers divided by the labor force which is the sum of employed and unemployed workers – that is, people who have a job or are looking for one.
4) The cost of unemployment exclude the psychological costs borne by unemployed workers and their families and the social costs associated with problems like increased crime and violence.
- Writing Assignment 3 (Problem Solving)
The labor market data for the most recent month are as follows:
– Unemployment rate: 5.9%
– Participation rate: 62.5%
– Not in the labor force: 62 million
Calculate the labor force, the working-age populations, the number of employed workers, and the number of unemployed workers.
(Source: Textbook Chapter 5 – Principles of Macroeconomics, Frank, R.; Bernanke B.; Antonovics, K; Heffetz, O, 8th edition, 2022 New York, NY: McGraw Hill Education)
- Writing Assignment 4
The Bureau of Economic Analysis (BEA) is a government agency that collects a wide variety of statistics about the U.S. economy. From the BEA’s website (www.bea.gov), find data for the most recent year (quarter) available on U.S. GDP and U.S. exports and imports of goods and services. What is the GDP growth rate and describe how BEA describes the growth rate of GDP. In addition, is the U.S. running a trade surplus or deficit and how much?
(Source: Textbook Chapter 4 – Principles of Macroeconomics, Frank, R.; Bernanke B.; Antonovics, K; Heffetz, O, 8th edition, 2022 New York, NY: McGraw Hill Education)