In June of 2011 the number of people unemployed was 15 milli…

In June of 2011 the number of people unemployed was 15 million, while the number of people in the labor force was 140 million. A year goes by and 4 million people drop out of the labor force due to the weakening of the labor market. Thus, in June of 2012 the number of unemployed was 11 million, while the number of people in the labor force was 136 million. What happened to the unemployment rate during this time period and what caused the change?

Suppose there is a simple one good economy that only produce…

Suppose there is a simple one good economy that only produces spinning rims. In 2015, the economy was able to produce 1 million sets of spinning rims at an amazing price of $500 per set. In 2016, the economy was able to produce 1 million sets of spinning rims at a price of $1,000 per set. By what amount did real GDP increase between 2015 and 2016 in the simple one good economy?