1. (2 pts each) Please define the following concepts in at most two sentences, showing that you have understood them, not just memorized definitions. (a) Nominal exchange rate: (b) Balance of Payments: (c) Potential Output: (d) Short run Phillips curve: (e) Wage stickiness: (f) NAIRU: (g) Open market operations: (h) Long run equilibrium: 2. (7 pts each) Numbers may not be round, you may leave answers as fractions. In country Adanus, goods A, B, and C are produced, all of C only being exported. Good D is only imported. There is no capital or investment, and there are no government expenditures. The price and quantities of these goods are as follows: Yri Q YrIP Yr2 Q Yr2 P 15 2 20 3 B 20 15 C (exported) 10 5 10 D (imported) 5 2 (a) Calculate the nominal GDP for Years 1 and 2. Then calculate the real growth rate of GDP from year 1 to 2. State your choice of base year. (b) Calculate the CPI inflation rate using year 1 as base, then using year 2 as base. Why would numbers be different? In Adanus, the demographics are as follows: Population 500 of whom are above 18 200 of whom are above 15 300 of whom are employed 50 not employed 75 of whom are looking for a job 25 given up looking for a job 5 other 45 (c) Calculate the labor force participation rate and the unemployment rate