2) Calculate the GDP gap in Canada if the actual GDP is $600,000,000,000, the natural rate of unemployment is 5.4%, and the actual unemployment rate is 6.6%. [4] 3) Yesterday, the price of a bag of beef jerky was $5.00, and you were willing to buy 10 of them. Today the price has gone up to $6.25, and you are only willing to buy 8. Calculate your elastic or inelastic. coefficient of elasticity of demand for the beef jerky and state whether the demand is relatively 4) The government decides to spend 12 million dollars on infrastructure improvements and the marginal propensity to consume is 0.75. Calculate the following; a) the marginal propensity to withdraw b) the fiscal multiplier c) the expected impact on gross domestic product [4] 5) Calculate economic growth where the real GDP for year 1 was 420 billion dollars and the real GDP for year 2 was 480 billion dollars. Section 2) ECONOMIC STAKEHOLDERS Write a 100 to 150-word response to one of the following questions: 1) Describe the positive and negative effects of an interest rate cut by the Bank of Canada. 2) Define frictional, structural, and seasonal unemployment, and explain what is meant by the natural rate of unemployment. Section 3) SELF-INTEREST AND INTERDEPENDENCE Write a 100 to 150-word response to one of the following questions: 1) Describe a number of factors that influence the value of the Canadian dollar and explain some of the consequences that can occur when the value changes. 2) Explain the differences among perfect competition, monopoly, oligopoly, and monopolistic competition. Part C - Long Answer Section 1) ECONOMIC DECISION MAKING Write a 100 to 150-word response to one of the following questions: 1) Explain how market, command, and mixed economies differ in how decisions are made about what goods and services to produce, how to produce them, and for whom to produce them. State which type of economy exists in Canada and justify your statement. 2) Describe a number of advantages and disadvantages of the privatization of Crown corporations or government services