Macroeconomics 5th Edition by Olivier Blanchard

Exercise 1

Using the information in this chapter, label each of the following statements true, false, or uncertain. Explain briefly.
a. The share of labor income in GDP is much larger than the share of capital income.
b. U.S. GDP was 25 times higher in 2006 than it was in 1960.
c. When the unemployment rate is high, the participation rate is also likely to be high.
d. The rate of unemployment tends to fall during expansions and rise during recessions.
e. If the Japanese CM is currently at 108 and the U.S. CM is at 104, then the Japanese rate of inflation is higher than the U.S. rate of inflation.
f. The rate of Inflation computed using the CPI is a better index of Inflation than the rate of inflation computed using the GDP deflator.
g. The high unemployment rate In Spain Is no mystery; it Is primarily the result of workers taking jobs in the under-ground economy instead of taking jobs in the sectors of the economy measured by the official statistics