1.(a) Interpreting the data given above, compare the economic indicators in Brazil from 2006 to 2019. What can you say about the economic growth of the county?

(5 Marks)

(b) Using the aggregate demand and aggregate supply curves, draw a diagram showing the GDP and Price levels in 2006 and 2019.

(5 Marks)

2.(a) Using your knowledge of the circular flow of income and interpreting the data given above, explain how changes in unemployment rate affected aggregate demand and aggregate supply.

(5 Marks)

(b) Between 2006 and 2012, unemployment fell from 8.6% to 7.2%. Some argue that government attempts to reduce unemployment inevitably led to trade-offs with other macroeconomic policy objectives. Analyse the tables above and explain whether you agree or not.

(5 Marks)

3.How are the increase in life expectancy and ageing population in Brazil affecting the aggregate supply? Use the data given above to explain your answer.

Table 1. Economic indictors Year GDP (current GDP per capita Inflation US $Trillion) (current US $ Thousand) 2006 1.108 5,887 4.2 2012 2.465 12,370 5.4 2019 1.840 8,717 3.7 Table 2 Employment and Unemployment Table 3. Demographics Year Unemployment, Unemployment Year Population Population ages total (% of youth (% ages 15- (millions) 65 and older labour force 24) (millions) 2006 8.6 17.8 2006 188 6.2 2012 7.2 16.0 2012 199 7.3 2019 12.0 27.5 2019 211 9.3 Table 4. HDI (Human Development Index) trends Year HDI Life expectancy Expected year of Poverty headcount at birth, (years) schooling $1.90 a day (% of population) 2006 0.702 72 13.5 7.2 2012 0.735 74 13.9 3.7 2019 0.765 75 15.4 4.6 Table 5. Environment Year CO2 emissions ( metric tons per capita 2006 1.8 2012 2.4