2-Suppose an economy's real GDP is $30,000 in year 1 and $31,200 in year 2. Assume the population is 100 in year 1 and 102 in year 2. a. What is the growth rate of its real GDP? b. What is the growth rate of real GDP per capita?

4. Label each of the following scenarios as either frictional unemployment, structural unemployment, or cyclical unemployment. a. Tim just graduated and is looking for a job. b. A recession causes a local factory to lay off 30 workers

5. Assume the following data for a country: total population, 500; population under 16 years of age or institutionalized, 120; not in labor force, 150; unemployed, 23; part-time workers looking for full-time jobs, 10. a. What is the size of the labor force? b. What is the official unemployment rate?

6. If the CPI was 110 last year and is 121 this year, what is this year's rate of inflation? In contrast, suppose that the CPI was 110 last year and is 108 this year. What is this year's rate of inflation? What term do economists use to describe this second outcome?

8-Suppose that the nominal rate of inflation is 4 percent and the inflation premium is 2 percent. What is the real interest rate?