1. The following grid represents Country X. 1|il'alue of the average market basket $20,000 1 {a} What is the value of the CPI in 21320? 1 (b) What is the real wage per week in 2(115? 2. Country X produces only two goods, TVs and chicken sandwiches. 2 (3) Draw the PFC model for Country X. Be sure your model is correctly and thoroughly labeled. You will use the model you have just drawn for the following questions. 2 (b) Today there is an unemployment rate of 6% in Country X. Using Point A, label this unemployment rate onto the model. 2 (b) Crh no! An earthquake hits Country X and one week later, there are 4D people who are unemployed and 1312} people who are employed. Calculate the Unemployment Rate for Country X and. using the model you have just drawn, show the effect of the earthquake on Country X's F'PF. 3. Use the eglass video to help you complete the following questions" 3 (a) What is the ination rate in Jasminia? 3 {b} If workers receive a raise of SD36, did their real income increase, decrease or remain the same. Explain. This is a twopart question. 3 [c] Your parents liye in Jasminia. where the inflation rate was 2% in 1998. So, in 1998, your parents purchased the house you now live in at a 4% xed mortgage {interest} rate. Wh is better off today, your parents, the mortgage company who loaned them the money or is the answer indeterminate? Explain. This is a twopart