EXAM I
ECON 3900
FALL 2005
NAME (PRINT):
Part I
1) (20%) Simply complete the rest of the table below
*Where
w’s
represent
the
weight of
the
product
in the
expenditures basket.
**Assume accuracy up to 1/1000
2) (10%) Consider the following economy:
Population: 1000000
Adult population: 850000
Level of employment: 540000
Unemployment rate: 10%
What is the number of the unemployed?
Year Px Py
Price
Index** Inflation
w* = 0.40 w=0.60 use year 2
as base
year
1 10 5
2 12 5
3 13 6
4 13 7
5 12 8
