GDP Gross Domestic Product

· Ensure Paper consists of at least 4 pages, double spaced, 12 point font (times new roman), at least 3 references that support answers and addresses the following questions.

· Show work for all calculations and explain how you got them

Suppose that in 2013, the economy produced 10 shirts at $20 each and 5 hamburgers at $5 each. In 2014, the economy produced 15 shirts at $21 each and 10 hamburgers at $6 each.

· What is the value of real GDP produced in 2014 using 2013 as the base year?

· (show how calculations was received)

· What would be the growth in real GDP?

· Why is there unemployment even when the economy is at "full employment"? What are some “costs of unemployment”?

· Use the table below:

Year	CPI
2008	100.0
2009	102.5
2010	106.0
2011	111.0

· What is the inflation rate from 2010 to 2011?

· Suppose that you have an income of $30,000 in 2008. How much would you need to be able to have the same standard of living in 2009?

· What are some of the problems with using the CPI as a measure of standard of living?

· Explain some limitations of using GDP as an indicator of standard of living (be sure to do some research on your own).