Econ 101 (Macroeconomics)

Assignment Guide

Topic 1.2: Data of Macroeconomics

Week No: 4 (28 February – 04 March 2022)
Subtopics: A. Gross Domestic Product
B. Consumer Price Index
C. Unemployment Rate

Target Learning Outcomes

After accomplishing this activity, the student can:
1. Identify and differentiate the various statistics used in measuring the economy’s
performance
2. Learn the basic accounting of GDP, inflation rate, and unemployment rate
3. Discuss the implication of reported GDP, inflation, and unemployment rate in recent
reports

Tasks
Please find the activity sheets attached at the end of the activity guide. Moreover, please be
mindful of the following instructions for every activity:
Problem Set 1 is the main activity for this section. This to be done in pairs but output is to be
submitted individually on the deadline to be announced by the instructor.

Submission
Please be mindful of the specific instructions given for each activity/problem set. Unless asked
to discuss your answers in our discussion board, kindly follow the format of the work sheet in
submitting your work:

• Send in pdf format, A4 paper size

• Font size 11, observe 1.5 spacing in between lines
• Name your file using this format: <surname_Econ101_activity#/probset#>
Work Sheet Format
Name : Date Submitted: Score:
Student No:
Problem Set 1
Data of Macroeconomics
1. Given the following data of a closed economy, complete the table:
Year Nominal GDP (billions, PhP) Consumer Price Index (CPI)
2014 9,708 126.1
2015 10,561 130.1
2016 11,542 134.0
2017 12,643 139.5
a. Calculate the annual real GDP (round off to the nearest whole number) and
inflation dates (round off to the nearest hundredths).
b. In this economy, does nominal GDP overstate or understate the growth in the
economy? Show all necessary calculations (round off to the nearest
hundredths).

2. Explain what happens to contributions to GDP in each of the following situations:

a. Annie earns a living on charging for investment advice online. Eventually, she
married one of her clients, whom she now provides advice at no charge.
b. Steve use to wash the windows of his own car every year. For this year
however, he hired a private company to wash his windows.
c.
3. Fill in the missing values (follow decimal places of the values in each column)

Year Current CPI Real Population Per Per Inflation

GNP GNP (millions) capita capita Rate (%)
(billions, (billions, Current Real GNP
PhP) PhP)
GNP (PhP) (PhP)

2008 6,271 100.00 86.97 72,107 N/A

2009 6,893 88.71 75,510 2.90
2010 111.40 6,931 85,352
2011 8,026 116.10 6,913 91.02
2012 120.50 92.60 97,230 80,689 3.79
2013 9,708 7,697 94.80
2014 10,561 130.13 97.10 83,580 3.17
2015 11,542 98.80 87,215
2016 139.54 100.50 125,798 90,151

4. A small country referred to as Coffeelandia has a total population of five thousand, of

whom four thousand are aged sixteen and above. Its local university, Starbucks U.,
undertakes a study to investigate the unusual work patterns of its inhabitants. A
partial result indicates that only one thousand of the country’s inhabitants are
currently employed, mostly at a small coffee-producing facility in a part-time basis.
Further, one hundred citizens re classified as unemployed – not working but
currently searching for new employment. Based on the initial findings:
a. Compute for Coffeelandia’s current labor force participation rate and;
b. Compute for the percentage of its citizens out of the labor force.

Note that the course pack provided to you in any form is intended only for your use in connection with the course that
you are enrolled in. It is not for distribution or sale. Permission should be obtained from your instructor for any use other
than for what it is intended.
 5. Consider a hypothetical country called YYS, has a labor force of 100 people. At the
start of the year (January) Yoon Bok, Hong Do, Min Ha, and Gyeo Ul are
unemployed. In February, those four find jobs but Jeong Won, Seok Yeong, Ik Joon,
Jun Wan become unemployed. Suppose further that every month, the previous four
who were unemployed find jobs and four different people become unemployed.
Throughout the year, Jae Hak, Chi Hong, and Seok Min continually remain
unemployed because firms facing government regulations view them as too costly to
employ.
a. Compute for the nation’s frictional unemployment rate
b. What is its structural unemployment rate?
c. Measure YYS’ unemployment rate.

Deadline: on or before 12 March

Note that the course pack provided to you in any form is intended only for your use in connection with the course that
you are enrolled in. It is not for distribution or sale. Permission should be obtained from your instructor for any use other
than for what it is intended.