1.If nominal income is $55,000 in the current year and the CPI in the current year is 120, then what does real income equal in the current year?

2.Define structural, frictional and cyclical unemployment. Give an example of each. What would you recommend to correct for each type of unemployment.

3.Explain why the unemployment number might get better (reduction from 4.5% to 3.5%) and there are still more people who are unemployed.