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ECON 214 PROBLEM SET 1

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Question;1. The receipts and year of release of the fivemovies with the largest nominal box office revenues, along with the CPI data of each year are presented below. Assuming that the receipts for each of the movies were derived during their year of release, convert the receipts for each to real dollars for the year 2010 (2010 CPI 230.1).Put the movies in order from largest to smallest real box office receipts and show your calculations for full credit.Movies NominalBox Office Receipts (millions) Year Released CPI in Year Released.Avatar \$760.50 2009 214.5Titanic 600.8 1997 160.5Star Wars 461 1977 60.5Shrek 2 437.2 2004 188.9E.T. The Extra-Terrestrial 399.9 1982 96.52. Classify each of the following as employed, unemployed, or not in the labor force.a. Juanita has two part-time jobs but hopes to get one full-time job instead.b. Bob teaches 1 class at the University at night and volunteers 20 hours a week at the hospital.c. Jaime babysits her younger sister while her mother works.d. Emma is retired. She volunteers at the library 10 hours each week.e. Alex is 15 years old and hopes to find a part-time job soon but has not applied anywhere.f. Rolando is not working but he has submitted an application to work at the local grocery store and is available to start work immediately.3. Use the following data to calculate (a) the labor force participation rate, (b) the unemployment rate, and (c) the employment/population ratio.Population age 16 and over 15,000Labor force 7,900Not currently working 4,500Employed Full-time 5,600Employed Part-time 1,100Unemployed 1,2004. Consider an economy with the following aggregate demand (AD) and short-run aggregate supply (SRAS) schedules. Decision-makers have previously made decisions anticipating that the price level during the current period will be P105.a. Indicate the quantity of GDP that will be produced during the period.b. Is it a long-run equilibrium level of GDP? Why or why not?c. How will the unemployment rate during the current period compare with the natural rate of unemployment?d. Will the current rate of GDP be sustainable into the future? Why or why not?AD105 Price Level SRAS 1056300 90 45006000 95 48005700 100 51005400 105 54005100 110 57004800 115 6000

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