Section A (8 marks each) A1. The Happy Land is an island with three sectors: agriculture, manufacturing, and services. This year, the total revenue for the service sector was $35 million of which $15 million was spent on buying goods from the manufacturing sector. The output of the service sector is purchased by consumers and the government. The output of the agricultural sector was $10 million, and it was sold to the manufacturing sector. The total revenue forthe manufacturing sector was $35 million. The output of manufacturing is sold to the service sector and the rest of the world. The total consumption expenditure was $20 million where $5 million was spent on imported goods. Assume investment is zero and the government only bought domestic services. Compute the GDP of Happy Land using the Production Approach and the Expenditure Approach. Explain your calculation. A2. According to the Malthusian theory of growth, what happens to income per capita after many lives lost during a war? Discuss the effects in the short run and in the long run. In your answer, compare the levels of population and income per capital to the pre-war level. How does the effects compare to the case when the economy experiences an improvement in technology? A3. A headline news in January 2021 states: "The UK unemployment in January 2021 has risen to 5% for the rst time since 2016\". Some economists argue this is not surprising and they argue the labour market status is worse than what the unemployment figure reveals. Define unemployment rate. Explain the logic behind their argument