Answer question 3 from Chapter 5, and also calculate the GDP price deflator in 2010 with a base year of 1998, using the information in question 3.

Go to the Bureau of Economic Analysis web site (www.bea.doc.gov/bea/dn/nipatbls/MAINTEXT.HTM) and answer the following questions:

• [a.] What was Real GDP in 1997 and 1998?
• [b.] What was Nominal GDP in 1997 and 1998?
• [c.] What was the GDP price deflator in 1998?
• [d.] What fraction of 1998 Real GDP was consumption? Investment? Government consumption and investment?
• [e.] Are we in a trade surplus or deficit?

• [a.] Has the labor force been growing or shrinking over the past year?
• [b.] How do we calculate the unemployment rate? Show this with the data from one of the months given.
• [c.] In what month was unemployment its highest? In what month was it lowest?