3. Suppose population increases by 3%, labor force increases by 2%, number

of unemployed persons increases by 4% , Compute the percentage changes

in the labor force participation and unemployment rates.

4. Suppose in an economy the production has constant return to scale. Also

marginal propensity to consume (MPC) is 0.7 and MPK = 15 and

MPL = 10. What is impact on private saving, public saving and national

saving when the government increase taxation by 200 and increase

expenditure by 250, together with an employment of additional 15 workers

and a fall of capital investment by 30 units?.