This assignment is for Module 3 and covers Chapter 21 from the text. Students should answer all questions. All questions
are of equal value.
Question 1
Given the figures in the table, calculate the values for A to C. Round your answers to one decimal (X.X%).
Nova Scotia 2013
Population of working age 781,500
Employed 449,500
Unemployed 45,400
Participation rate (%) A
Unemployment rate (%) B
Employment rate (%) C
Question 2
Good 2013 Price 2013 Quantity 2010 Price
Pizza $15 per pizza 30 $13 per pizza
Beer $24 per dozen 20 $16 per dozen
Rent $850 per month 12 $650 per month
Books $48 per book 10 $89 per book
Suppose the table above contains all the goods the average student consumes.
a) Calculate the annual consumer price index (2010 = 100) in 2013.
b) Precisely interpret the value of the CPI figure you calculated in part a).
c) Use you index from part a) to answer the following question. Show your calculations. If the average student
income was $4,000 per month in 2010 and $6,500 in 2013, in which year did students have greater purchasing power (higher
real income)?
Question 3
Use the information in the table below to fill in the missing values in the table. Round your GDP calculations to the
nearest whole number, round your economic growth and inflation figures to one decimal. Show your calculations.
Year Current $ GDP Million Constant $ GDP Million Economic Growth GDP Deflator (2011=100) GDP
Inflation%
2010 A 910 X 97.5 X
2011 925 925 1.65 100.0 E
2012 950 B D 102.8 2.8
2013 975 935 D C E
A) Current $ (nominal) GDP in 2010
B) Constant ($ 2011) (real) GDP in 2012
C) The GDP deflator (2011 = 100) in 2013
D) Economic growth in 2012 and 2013
E) Rate of inflation in 2011 and 2013
Question 4
Create a consistent numerical example, expressing the current price of comic as a price index (base year = 100), to
explain the comic below. Be sure to explain your calculations.
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