1. Consider the following production function: Y - E(K L) = A(2K + 3L) Does this production function exhibit constant returns to scale? 2. Suppose the table represents the production function of both Mexico and Spain. Use the following information to answer the next question. Country Le Population K = Capital (trillions) | Y = Output (trillions) (millions Mexico 105 0.18 1.0 Spain 45 0.74 1.7 2. Calculate total factor productivity for both countries using Equation 3. Equation 3: Y = F(KI) = AKO.3 1 0.7 3) Calculate per capita income for both countries. 4. Use the accompanying table to calculate the following statistics for Brazil: a) Labor force b) Labor-force participation rate c) Unemployment rate Adult Population (millions) 140 Unemployed (millions) 7 Employed (millions) 88 5. Use the following table, based on BEA data from the first quarter of 2013 (billions of dollars), to calculate items (a) and (b): a) Other income b) Net factor income Compensation of employees 8,737 Corporate profits 2,021 National income 14,313 Gross domestic product 16,535 Gross national product 16,772 Factor income to the rest of the world 237 6. Complete the problems. Show all of your work. Suppose people only consume 3 different goods. The following table shows the prices and quantities of each good consumed in 2006, 2007, and 2008. Year Price of Quantit Price of Quantit Price of Quantit Fish y of Pork y of Beef y of Fish Pork Beef 2006 $10 200 $1 1 225 $12 275 2007 11 325 200 13 375 2008 12 500 10 325 16 475 a. Calculate nominal GDP in each of the three years. b. Calculate Real GDP in each of the three years, using 2006 as the base year. c. Calculate the GDP deflator for each of the three years. d. Calculate inflation for 2007 and 2008