need help

Problem Set 1

Complete all questions listed below. Clearly label your answers. 

 

1.     
The receipts and year of release of the five movies with the largest nominal box office revenues, along with the CPI data of each year are presented below. Assuming that the receipts for each of the movies were derived during their year of release, convert the receipts for each to real dollars for the year 2010 (2010 CPI 218.1).Put the movies in order from largest to smallest real box office receipts.

MoviesNominalBox Office Receipts (millions)Year ReleasedCPI in Year Released.Avatar$760.50 2009214.5Titanic600.81997160.5Star Wars461197760.5Shrek 2437.22004188.9E.T. The Extra-Terrestrial399.9198296.5   

3.   Use the following data to calculate (a) the labor force participation rate, (b) the unemployment rate, and (c) the employment/population ratio.

 Population age 16 and over15,000Labor force7,300Not currently working4,500Employed Full-time5,000Employed Part-time1,100Unemployed.1,200   

4.   Consider an economy with the following aggregate demand (AD) and short-run aggregate supply (SRAS) schedules. Decision-makers have previously made decisions anticipating that the price level during the current period will be P105.

 

a.      
Indicate the quantity of GDP that will be produced during the period.

b.     
Is it a long-run equilibrium level of GDP? Why or why not?

c.      
How will the unemployment rate during the current period compare with the natural rate of             unemployment?

d.     
Will the current rate of GDP be sustainable into the future? Why or why not?

 AD105Price LevelSRAS 1056300904500600095480057001005100540010554005100110570048001156000