ACJC H2 Intro to Macroeconomics Tutorial Worksheet

1 ANGLO-CHINESE JUNIOR COLLEGE JC1 Economics H2 Introduction to Macroeconomics Tutorial Worksheet 5 Question 1 Table 1: Selected US economic indicators from 2009 – 2014 2009 2010 2011 2012 2013 2014 Real GDP (% change) -2.8 2.5 1.6 2.3 2.2 2.4 Unemployment rate (%) 9.3 9.6 8.9 8.1 7.4 6.2 Labour Force (Millions) 154.2 153.8 153.6 154.9 155.4 155.9 Inflation rate (%) -0.4 1.6 3.2 2.1 1.5 1.6 Source: World Bank, US Bureau of Labour Statistics (a) (i) State the formula to calculate unemployment rate. [1] (ii) Explain why ‘retirees’ are NOT considered as unemployed. [2] (b) Describe the trend of General Price Level in the US from 2009 to 2014. [2] (c) Compare the trend of unemployment rate and inflation rate in the US from 2011 to 2014. [2] (d) Explain what the trend of unemployment rate from 2011 to 2014 suggests about the overall performance of the US economy across the years. [3] Section A: Data Response Questions

2 Question 2 Table 2: Percentage change in real gross domestic product (GDP) 2009 2010 2011 2012 2013 Japan -5.5 4.7 -0.5 1.8 1.6 USA -2.8 2.5 1.6 2.3 2.2 China 9.2 10.6 9.5 7.8 7.7 Germany -5.6 4.1 3.6 0.4 0.1 Source: World Bank, OECD Statistics Table 3: Unemployment (% of total labour force) 2009 2010 2011 2012 2013 Japan 5 5 4.5 4.3 4 USA 9.4 9.7 9 8.2 7.4 China 4.4 4.2 4.3 4.5 4.6 Germany 7.7 7.1 5.9 5.4 5.3 Source: World Bank, OECD Statistics (a) Compare the trend of real GDP between China and Japan from 2010 to 2013. [2] (b) Explain the possible relationship between Germany’s real GDP growth rate and unemployment rate. [2] (c) Explain what the Japan’s real GDP in 2011 suggest about the overall Japan’s economic performance in that year. [2] Question 3: Asia’s Consumer Revolution Gets Serious Table 4: Singapore: Expenditure of Gross Domestic Product at 1995 Market Prices 1998 (S$ million) 1999 (S$ million) 2000 (S$ million) 2001 (S$ million) 2002 (S$ million) Total GDP 138,399 147,286 161,103 157,318 160,853 Private Consumption Expenditure 52,467 56,762 64,737 66,239 66,812 Government Consumption Expenditure 14,109 15,063 17,720 19,181 20,033 Gross Fixed Capital Formation 51,456 48,909 52,733 49,737 44,929 Increase in Stocks -7,828 -2,755 1,045 -8,917 -8,487

3 Net Exports of Goods and Services 29,622 31,219 27,362 33,656 40,145 Statistical Discrepancy -1,427 -1,912 -2,494 -2,578 -2,579 Source: Singapore Department of Statistics (a) Explain what it means by ‘Gross Domestic Product measured at 1995 market prices’? [2] (b) (i) Describe the trend for GDP at 1995 market prices in Singapore from 1998 to 2002.