1.Explain the markets involved and the multiplier of a simple AD-AS model.

2.Discuss the underlying determinants of labor demand.

3.What determines youth employability?

4.Compute unemployment rate if working-age population is 600,000 employed personals are 480,000 and 50,000 are not willing to or unable to work. There are additional 5000 people not actively seeking employment.

5.Solve for Y (real income) and derive investment-savings balance. Complete the NAM that results from this exercise.

Y = C+I+G+X-IM

C = 200+0.8Y,

T = 0.25Y, TR = 50

G = 200, X=150, M = 120+0.15Y

I = 250