CALIFORNIA STATE UNIVERSITY, SACRAMENTO
Department of Economics
Prof. A. R. Gutowsky
Economics 1A
EXERCISE 1 2
Exercise 1 -- Money and Real GDP and Rates of Economic Growth and Inflation
1. Given the following information:
| Year | Money GDP | GDP Deflator (1996$) |
CPI (1982-84=100) |
Labor Force | Unemployed |
| 1997 | 8301 | 101.9 | 160.5 | 136.3 | 6.7 |
| 1998 | 8760 | 103.1 | 163 | 137.7 | 6.2 |
| 1999 | 9256 | 104.6 | 166.6 | 139.4 | 5.9 |
| 2000Q1 | 9698 | 105.9 | 171.3 | 140.5 | 5.8 |
(A) Calculate real GDP.
(B) Calculate the rate of growth of real GDP
(C) Calculate the rate of unemployment
(D) Calculate the rate of inflation (CPI)
(E) Calculate the rate of inflation (GDP
Deflator)
(F) What does "1996$" mean? 1982-84 =
100?
2. Given the following information:
| Year | Average Weekly Earnings | CPI |
| 1970 | 119.83 | 38.8 |
| 1980 | 235.10 | 82.4 |
| 1990 | 345.35 | 130.7 |
| 1998 | 441.84 | 163 |
(A) Calculate real weekly earnings.
(B) What has happened to real earnings over
this period?
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