1. Suppose GDP equals $7 trillion, consumption equals $1.5 trillion, the government spends $4 trillion and has a budget deficit of $1 Trillion Find public saving, taxes, private saving, national saving, and investment. 2. California has 11.1 million employed people, 6.2 million unemployed people and 7 million people not in the labor force. Compute the labor force, unemployment rate adult population, and labor force participation rate. 3. You deposit $1,000 in a bank account that pays a fixed interest rate of 5% per year and it compounds annually. What will your bank account balance be in 50 years? 4. You are thinking of buying house for $70,000. The house will be worth $100,000 in five years. A. Should you buy the lot if r = 0.05? (r= interest rate a bank would pay you) B. Should you buy it if r = 0.10? (r= interest rate a bank would pay you)