1. Unemployment rates:

Civilian, non-institutional, population over 16 years of age in country A is 193 million. Of the 193 million, 131,240,000 are employed, and 23,160,000 are unemployed of whom 2,316,000 are frictionally and 5,790,000 are structurally unemployed.(10 points)

You must round numbers to the nearesthundredthdecimal:

For example, 34.1277 = 34.13, and 34.1215 = 34.12.

a.Calculate the actual (or total) unemploymentrate. ___________15%________

b.Calculate the NaturalRateof Unemployment (NRU). ______5.25%_________

c. Calculate the cyclical unemploymentrate. __________15,054,000____________

d.Is this country in a recession or a boom? ___________Recession__________________

e.Explain your answer to part d.The reason why the country is in recession is because the unemployment rate in the country is 15%, which is a very high rate of unemployment.

2. Present value of a future return:

What is the present value of future expected return of $5,000.00, four years from now, if the annual fixed interest rate is 3.2%?(3 points)

3. Does government budget deficit "crowds out" investment spending?

Support your response using economic reasoning.(6 points)

4. Give one reason why demand for loanable funds mayincrease(shift up and to the right), and one reason why supply of loanable funds maydecrease(Shift up and to the left).(6 points)