Macroeconomics Revision Sheet

1. Explain why real GDP might be an unreliable indicator of the standard of living.
2. Use the following data to GDP
 Government expenditure: $20 billion
 Income: $100 billion
 Consumption expenditure: $67 billion
 Investment: $21 billion
 Net Exports of goods and services: $30 billion

3. In June 2016, the number of people employed was 139.1 million and the number
unemployed was 14.6 million. Calculate the rate of unemployment
4. What determines if a person is in the labour force?
5. Calculate the Rate of Inflation of 2013. If CPI was 310 in 2012 and 421 in 2013.
6. The Czech Republic has a GDP of 1,800 billion koruny. The exchange rate is 20
koruny/U.S. dollars. The Czech population is 20 million. What is the GDP per capita of
the Czech Republic expressed in U.S. dollars?
7. What is the difference between intermediate goods & final goods and services?
8. What does the consumer price index measure?
9. What is the difference between GDP & GNP?