1. Suppose the number of employed people in an economy is 121,166,640. The unemployment rate in this economy is 10.4 percent, or .104, and the labor force participation rate is 72.5 percent, or .725. (3 marks, 1 mark each) a. What is the size of the labor force? b. How many people are unemployed? c. What is the size of the working-age population? 2. Consider the following four situations. In which situation would a borrower be best off and in which situation would a lender be best off? (8 marks, 2 marks each) a. The nominal interest rate is 14 percent, and the inflation rate is 17 percent. b. The nominal interest rate is 7 percent, and the inflation rate is 3 percent. c. The nominal interest rate is 4 percent, and the inflation rate is -2 percent. d. The real interest rate is 6 percent, and the inflation rate is 2 percent