150 points 9 essay questions **EXAMPLES BELOW**
1. (TCO F) The size of the labor force in a community is 500, and 400 of these folks are gainfully employed. In this community, 100 people over the age of 16 do not have a job and are not looking for work. In addition, 200 people in the community are under the age of 16. The unemployment rate is ______.
2. TCO F) Suppose nominal GDP in 2005 was $11 trillion, and in 2006 it was $14 trillion. The general price index in 2005 was 100, and in 2006 it was 102. Between 2005 and 2006, real GDP rose by what percent?
3.(TCO F) The consumer price index was 198.3 in January of 2006, and it was 202.4 in January of 2007. Therefore, the rate of inflation in 2006 was about ______.
4.(TCO E) (10 points) As the Euro appreciates in value relative to the U.S. dollar, what happens to the price of U.S. goods in Europe? What happens to the price of European goods in the U.S.?
(10 points) Why would a country (for example, China) choose to keep their currency relatively pegged to the U.S. dollar? If the U.S. dollar were to appreciate considerably against most currencies, what would be the effect on Chinese exports to countries other than the United States?