2 quick questions (1 Viewer)

[unfold]

can someone confirm my answer for me? this is off HSC 2003. i got 0.2million..not sure if its correct or not.

From HSC 04: what are 2 possible causes of fall in participation rate in this economy? (there was a table accompanying this)

sorry.. i just got 1 more questions.. might as well add it here

what is another problem associated with structural change other than structural unemployment?

 

[Freaky]

Can u please explain how Real GDP is defined.. i forgot..

 

[yabby]

Real GDP = nominal GDP/CPI x 100

therefore for year 2 it's 416/104 x 100 = 400 ($mil)

Edit forget the mil

 

[Cityboy]

Answer is 20 million

 

[word.]

real gdp is basically the gdp before taking into account inflation
so, 416/104 * 100 = $400 million

what are 2 possible causes of fall in participation rate in this economy?

a downturn in the economy caused by lower levels of economic growth can discourage job seekers from 'actively seeking work' hence reducing the participation rate.

also people might be retiring at a younger age. this will see a fall in the labour force but the working age population will remain the same thus the participation rate will decrease.

 

[nick1048]

Real GDP (in year 2) = Nomical GDP2 x CPI1/CPI2

.'. REAL GDP2 = 416 x (100/104)

= $400 million (word is correct)

Another problem with structural change is maintaining the confidence of the domestic economy to prevent social upheaval and ambiguity for voters. Government systems must maintain the confidence of their democratic voters.

 

[mattchan]

How about another problem of structural change is the time it takes to impact on the economy which represents as a constraint on economic growth in the short term due to short term increase in costs? (like buying capital)

 

[firehose]

^ There's definitely a short-term cost to structural change, not only in the transition of industries but most importantly in structural unemployment.

It must be always stated that structural change is always a long-term time lagged economic goal, it can take years for the benefits to eventuate.

 

[holla back girl]

other problems to structural change:

more government revenue in helping firms adjust to the structural change and retraining those that are affected by structural u/e.

increased costs passed to consumers in the short term due to adjustment to new capital and technology which increases costs of production