Suppose that the U.S. cracks down on illegal immigrants and returns millions of workers to their home countries. Graphically show and explain what happens to U.S. potential GDP, employment, and the real wage rate.
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4. Suppose that the U.S. cracks down on illegal immigrants and returns millions of workers to their home countries. Graphically show and explain what happens to U.S. potential GDP, employment, and the real wage rate.
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- The following information is given for an economy: Labor Force of an Economy Number of People (millions) Total population 46.5 Children under the age of 16 8.5 Retirees 7.8 Employed 23.9 Unemployed 2.5 Not actively seeking employment 3.0 Homemakers 0.8 Instructions: Round your answers to one decimal place.…3. In a small community, breakfast is the most important meal of the day. Therefore, the only two goods that this community produces are coffee and scones in the following amounts: Year 2020 2021 Quantity 60 cups 90 cups Coffee Price $1.25 $1.45 Quantity 45 units 65 units Scones Price $2.10 $3.95 a) Calculate the inflation rate for 2021 using the GDP deflator method (assume that 2020 is the base year for real GDP calculations). Show your work. b) Calculate the inflation rate for 2021 using the CPI method (assume that 2020 is the base year for CPI calculations). Additionally, assume that the consumption basket for both years contains only 10 cups of coffee and 40 scones. Show your work. c) Compare the results of both inflation calculations and explain why they are similar or different based on the two methods and on the specific data used in this example.Table 1 Table 1 shows the labor market schedule and Table 2 shows the production function schedule for the country of Moldovokia. Real wage rate Quantity of labor Quantity of labor demanded supplied What is potential GDP if a decrease in the population changes the quantity of labor supplied by 20 billion hours at each real wage rate? (2012 dollars per hour) 15 (billions of hours per year) 20 60 20 50 30 Potential GDP is $ trillion. 25 40 40 30 30 50 35 20 60 Table 2 Labor Real GDP (trillions of 2012 dollars) 2.0 (billions of hours per year) 20 30 2.7 40 3.2 50 3.5 60 3.6 Enter your answer in the answer box. ? MacBook Air esc 80 000 000 DII DD F1 F2 F3 F4 F5 F6 F7 F8 F9 F10 F11 F12 2$ & * 1 2 3 7 8 delete Q W E Y U { [ A S F G %3D K L D.
- Suppose the only goods produced and consumed in an economy are food and clothing. The following table shows data on the quantities and prices of output in different years: fill in the table below- (2001 is the base year) Year Food (quantity) Price of Food Clothing (quantity) Price of clothing Nominal GDP Real GDP GDP Deflator Inflation 2000 200 $4 400 $6 2001 300 $5 500 $8The country of Old Jersey produces milk and butter, and it has published the following macroeconomic data, where quantities are in gallons and prices are dollars per gallon. Year 1 Year 2 Good Quantity Price Quantity Price Milk 500 $2 900 $3 Butter 2000 $1 3000 $2 Between Year 1 and Year 2, the GDP deflator (based on Year 1 as a base year) rose Select one: a. 123.00%. b. 83.33%. c. 60.00%. d. 81.25%.Three main ideas help explain why the prices of some services, such as education, health care, and the performing arts, continue to rise relative to those of other goods or services. 1. real wages in different occupations can rise at varying rates in the long run, 2. Real wages tend to rise at the same rate as labor productivity. 3. Productivity cannot or does not grow for certain services. Using these three ideas, indicate which of the following statements about high school teachers and factory workers is true in accordance with the cost disease of the personal services? Check all that apply. A. Wages of high school teachers will rise at a faster rate than the rate of productivity growth. B. Because high school teachers are no more productive than they used to be but factory workers are, the real wage of factory workers must grow faster than that of high school teachers. C. The services of high school teachers will become relatively more expensive than those of…
- The economy of Fantasia produces only 2 goods namely Shoes and Computers. The total productionand average prices of shoes and computers are displayed in Table 2 attached. (a)Explain why nominal GDP in 2020 differs from real GDP in 2020 (b) Calculate the changes in prices for both products. How much has price changed from 2019 to2020?Imagine that the United States produces only three goods: apples, bananas, and carrots. The quantities produced and the prices of the three goods are listed below: Goods Apples Bananas Carrots Quantities Produced Prices ($) 7 2.00 10 24 1.00 1.50 Instructions: Round your answers to two decimal places. a. U.S. GDP is: $ b. Suppose that a drought hits the state of Washington. This drought causes the quantity of apples produced to fall to 4. Assuming that all prices remain constant, the new U.S. GDP is: $ c. Assume, once again, that the quantities produced and the prices of the three goods are as listed in the table. Now, given this situation, carrot sellers decide that the price of carrots is too low, so they agree to raise the price. If the U.S. GDP is $70.00, the new price of carrots is: $ per carrot.Assume a hypothetical economy produces only two goods as shown below. (base year=2017). O Year 2017 2018 2019 $7 $20 $28 $36 Quantity 2 4 The real GDP in the year 2019 is equal to: Apples 6 Price 5 Quantity 1 2 Oranges 2 Price 2 3 1