1. Consumption $100, Government purchases $50, Government transfer payments $30,
Gross Private Domestic Investment $20, Imports $10, Exports $7. What does GDP
equal?
2. Real GDP in 1933 = $206 billion
Price level in 1933 = 24
Real GDP in 1945 = $596 billion
Price level in 1945 = 38
Question: What was the percentage change in real GDP from 1933 to 1945, and what
was the percentage change in price level from 1933 to 1945?
3. Describe whether each of the following is frictional, structural, or cyclical
unemployment.
a. The economy worsens, GM shut down a factory, laying off workers.
b. GM lays off 5,000 workers and replaces them with robots.
c. About 10% of GM workers at the truck plant quit their jobs to live in a different
state.