In this activity you will use your acquired knowledge and skills to problem solving regarding the unemployment rate, price index and inflation rate.

1. Suppose that you are given the following information.Answer the following questions:

labor force 200 million

Adults in the military 1 million

Population below 16 50 million

Employed adults 180 million

Institutionalized adults 3 million

Not in labor force 40 million

1. What is the total population? (Show your work)
2. How many people are unemployed, and what is the unemployment rate?
3. What is the labor force participation rate?

1. In 2016, the cost of a market basket of goods was $2,000. In 2018, the cost of the same market basket of goods was $2,100. Use the price index formula to calculate the price index for 2018 if 2016 is the base year. Show your work.

1. Consider the following price indexes:

2018 Consumer Price index:251.107 2019 Consumer price Index: 255.651

1. Which year is likely the base year?
2. What is the inflation rate from 2018 to 2019?

4.The real interest rate is 3 percent, and the nominal interest rate is 5 percent. What is the anticipated rate of inflation?

5.A nation's frictional unemployment rate is 1%. Its cyclical rate of unemployment is 9.7%, and its structural unemployment rate is 4 %. What is this nation's overall rate of unemployment?