Please answer the question completely and provide the appropriate math.

Use the following table for 1.

In the United States the number of people not in the labor force, employed, and unemployed is shown in the table below for years 1973, 1974, and 1975. All numbers are in millions.

197319741975

Not in labor force57.758.259.4

Employed85.186.885.8

Unemployed4.45.27.9

1. For each year, calculate the unemployment rate.

1973__________1974______________1975__________

2. Presuming a natural rate of unemployment of 4% during this period, what was the unemployment gap in 1974 and 1975?

1974 __________1975 _____________

3. U.S. real GDP growth for 1974 and 1975 was negative 0.5% and negative 0.2% respectively. Presuming an expected growth rate of 3% for each year, and given the data in the previous questions, what was the Fed's Loss function for each year?

1974 __________1975 _____________