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Country Characteristics – 2010
Geographics:
 Lower Slobovia is located in Eastern Europe.
 Roughly the size of Delaware.
 Assume the natural resources and climate are similar to that found in
Texas.
Demographics:
 Civilian labor force is comprised of 35 million Slobovians.
 75% of the population has the equivalent of a high school education.
 Average income per worker is roughly $31,000 (the $ also denotes the
Lower Slobovian currency – the slob).
 30% of the households have Internet service.
 90% of the population has televisions.
 The percent of personal expenditures spent on food and fiber products is
25%.
Infrastructure:
 Adequate roads, rail service, etc. for domestic product distribution.
 Adequate newspaper distribution nation-wide.
 90% of households have radios and televisions.
Economy:
 The nation’s food and fiber system constitutes 53% of Lower Slobovia’s
GDP, which is up 2% from the previous year.
 The nation’s central bank is called the Federal Reserve of Lower
Slobovia. The bank has all the monetary policy tools discussed in class
for the U.S. Federal Reserve System.
 The economy is in the “Keynesian” range of the aggregate supply curve
and the general price index is 1.0 (2009 base period).
 The real wage rate in Lower Slobovia is $15 slobs per hour, and the labor
market is in the perfectly elastic range of the labor supply curve.