3. (LO 3) The average nominal incomes earned in Eturia and the CPI are shown in Table 4.10.

Connect Study Problems Please see the Answer Key (on Connect) for solutions to the Connect Study Problems. Algorithmic versions of these problems are available to instructors on Connect.

2013 2014 2015 Nominal GDP ($billions) 420 456 500 Real GDP ($billions) 400 422 447 Population (millions) 16 16.56 17.14 TABLE 4.8 2013 2014 2015 Nominal income ($) 28 000 29 600 32 000 CPI (2002 = 100) 116 121 128 TABLE 4.10 Population Nominal GDP Price Index

(millions) ($billions) 2009 = 100 Altria 35 $ 715 140 Bergan 75 2200 120 Casper 150 2875 180 TABLE 4.11 2013 2014 2015 Population 20 21 22.05 Working-age population 12 12.5 12.8 Labour force 8.4 9 9.2 Unemployed 0.7 0.8 0.85 CPI (2002 = 100) 108.2 109 110.3 TABLE 4.9

a) What are the (labour force) participation rates in each year? 2013: 2014:

2015:

b) What are the unemployment rates in each year?

2013: 2014: 2015:

c) Calculate the annual inflation rate. 2014:

2015:

a) Calculate real incomes. 2013: 2014:

2015:

b) Calculate the percentage that real incomes rose.

2014: 2015: