The following data summarize the expenditures for the country of XYZ during 2003 in millions of alphabet, the currency of country XYZ
Gross Private Domestic Investment $300
Business Fixed Investment $200
Change in Inventories $100
Exports $200
Imports $200
Personal Consumption Expenditures $800
Government Consumption Expenditures and Gross Investment $500
Statistical Discrepancy $10
Depreciation Expenditures $50
a. Calculate net exports
b. Calculate GDP
c. Calculate national income
d. Assume that the GDP deflator is 120 and calculate real GDP for 2003.
a. F = X - M = $200 - $200 = 0
b. GDP = C + I + G + F = $800 + $300 + $500 + 0 = $1,600
c. National income = GDP - Depreciation expenditures + Statistical discrepancy = $1,600 - $50 + $10 = $1,560
d. Real GDP = (Nominal GDP/GDP deflator) × 100 = ($1,600/120 ) × 100 = $1,300
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If clerical workers in your state voted to have a union represent them in negotiations with employers, they would have monopoly power in wage determination
Employers would be in no position to exert monopsony power in their employment of clerks in this market due to the large number of employers in the market. Labor supply is given by LS = 50W - 100 (or, equivalently W = LS/50 + 2 ) Labor demand is given by LD = 700 - 25W (or, equivalently W = -LD/25 + 28 ) a. What is the equation for marginal revenue? b. Using the supply and demand equations, compute the wage rate and number of workers that would be hired when there is no union representation. c. Using the supply and demand equations, compute the wage rate and number of workers hired when the union represents workers and acts to maximize aggregate wages to all workers hired. d. Explain the impact of (c) on the competitive market.