Question 5 Given events 1 and 2 in the table below. complete the blanks in the table below: a] Will the events affect AD or ERAS? b] Having chosen either AD or ERAS, will it increases or decreases? cl Will Price level (CPI) increases or decreases? d) Will Real GDP increases or decreases? D,r Events A. SD impacting the Increase US. economy Increase Increase or only, other or or things constant. Decrease Decrease Decrease Event 1: American consumers expect general price to rise in the near future. Event 2: US dollar appreciates relative to other currencies in the exchange rate market. Question 1 Country A's ciyilian, non-institutional, population over 16 years of age is 202,500,000, of this number 120,100,000 are employed, and 10,125,000 are unemployed, of whom 6,075,000 are frictionally, and 4,050,000 are structurally unemployed. a) What is the size of the labor force? ................................................ b) What is the Structural Unemployment E? c} What is the actual unemployment ? d} What is the Natural m of Unemployment (NRU)? e) What is the Cyclical unemployment ? fl Is the economy in a recession, boom, or full employment? g) Explain your answer to part f: Question 2 9 pts In year one, prices for goods X, Y, and Z are $2, $4, and $6, respectively, and 20 units of X, 40 units of Y, and 60 units of Z are produced. In year two, prices for goods X, Y, and Z are $3, $4, and $7, respectively, and 22 units of X, 43 units of Y, and 63 units of Z are produced. Note: Year one is the Base Year: I. Calculate Nominal GDP for year two. N. Calculate Real GDP for year two. I\". Calculate Real GDP growth rate between year one and year two. Answer format: I. Nominal GDP in year two = $ _______________________ II. Real GDP in yeartwo = $ _______________________ |||. Real GDP growth rate between year one and year two: Every year you include the two following items in your typical consumer basket of goods, 52 units of bread and 20 units of butter. To see how the dollar value of these two items have changed over the last three years you intend to calculate their Consumer Price Index (CPI) and have created the table blow: Fill in the blanks Year 1 Year 2 Year 3 Base Year 52 units of Price: Price: Price: bread $1.09 $1.15 $1.32 20 units of Price: Price: Price: butter $3.15 $3.35 $3.60 Total $ value of the basket of consumer goods. CPI Inflation rate relative N/A to its prior year.Question 4 Suppose your income in 2015 was $38,444.80 when the CPI measured 237.02. Currently the CPI is 296.30. Convert your 2015 income to the current inflation adjusted dollar value. $Use the graph below to help you explain how the following event affects variables a through d: Event: Increase in productivity of labor. a) Will this event affect: Aggregate Demand (AD), or, Short Run Aggregate Supply (SRAS)? b) Will equilibrium Price: Increases, or, decrease? c) Will Real GDP: increase, or, decrease? d) Will unemployment rate: increase, or, decrease? Aggregate price level LRAS SRAS1 E1 AD Y = Real GDP potential output