1. What might cause potential real GDP to increase? Improvement on technology 2. Nominal GDP is $500,000,000. The price index is 625. Find real GDP. 80,000,000 3. Real GDP in an economy increases from $1,250,000 to $1,281,250. Find the economic growth rate. 4. Identify each as an example of structural, cyclical, frictional unemployment, or someone not in labor force: a. Automation causes a reduction in manufacturing jobs. b. A college student quits her full time job in order to look for a part time job because she needs more time to study for finals. C. A financial crisis results in mass layoffs and a shrinking economy. d. A new parent quits his job to be a stay at home parent