III. Eclectic Problems. (Remember, the CPI data is available to you in Course Documents) A. Assume the unemployment rate is 5% and 10,000 people are unemployed. How many people are working? B. Assume the inflation rate is 5%. How long before prices double? C. In 1972, I got my first car. I remember gas was about $.35 per gallon. That seems cheap compared to today. What is the inflation adjusted price of that gallon of gas? D. One problem of adjusting historical prices to the present is that product quality and characteristics change. Three obvious changes to gasoline are: the removal of lead in gas, tighter environmental restrictions on refining gas, and the addition of ethanol into gas. These changes should make the inflation adjusted price of gasoline higher, lower, or not make a difference. Defend your position