Q ECON 201 HOMEWORK III Summer I 2022 Due May 20th, 2022 CHAPTERS 8 and 9 (Part 1) 1. Gross Domestic Product (Chapter 8) 2013 2017 2018 Product Quantity Price Quantity Price Quantity Price MP3s 40 $150.00 45 $200.00 50 $250.00 Tacos 2,000 2.00 2,200 2.25 2,300 2.40 Coats 300 50.00 310 52.00 350 55.00 1.1 Consider the table above for a simple economy: a) Using 2013 as the base year, calculate nominal GDP, real GDP, and the GDP deflator for 2017 and 2018. b) Using GDP deflator found in part a, calculate the rate of increase in the price level from 2017 to 2018. Show your work. 1.2 Give two reasons why GDP does not reflect total production in an economy. 1.3 Even though it is generally true that the more goods and services people have, the better off they are, GDP provides only a rough measure of well-being. Assuming language is not an issue, what other factors besides GDP might you consider when deciding where to live and work? Explain. ? 2. Unemployment and Inflation (Chapter 9) Working-age population 235,900 Employment Unemployment Unemployment rate 9.4% Labor force Labor force participation rate 65.5% 2.1 Fill in the missing values in the table of data collected in the household survey for December, 1996. The working-age population, employment, unemployment, and labor force are measured in thousands. Show your work. 2.2 Explain what economists mean by full employment and why this rate of unemployment is not zero.