Problem Set #1-2 2

i. Change in GDP: ii. Component(s) Affected: c. (0.2 points) The US government awarded a total $814 billion worth of stimulus checks to American households at the height of the COVID-19 pandemic. i. Change in GDP: ii. Component(s) Affected: d. (0.2 points) A US consumer buys a new Audi produced in Belgium for $50,000. i. Change in GDP: ii. Components Affected: e. (0.2 points) Apple produces $6 million worth of computers in 2023 to place into inventory for that year. i. Change in GDP: ii. Components Affected: 4. (Growth Rates and Standard of Living, 1 point) Country Year Nominal GDP Nominal Per Capita GDP Population Price Level GDP in 2021 Dollars Country A 2021 20,000 3,000 100 Country A 2022 66,000,000 4,000 105 Country B 2022 80,000,000 16,000 110 a. (0.2 points) Is nominal GDP the best indicator of standard of living for a country or locality? If not, identify what modifications should be made to better represent average welfare. b. (0.4 points) Fill in the blanks in the table, making sure to round to the nearest whole number. c. (0.2 points) Which country, A or B, had a higher standard of living in 2022? Give a number as a justification for your answer. d. (0.2 points) What was the rate of economic growth for Country A between 2021 and 2022? Answer in percentage terms and round to one decimal place. 5. (Unemployment, 1 point) Classification Number of People Relevant Population 276 million