5. Arjunland has a population of 200,000, a labor force of 100,000 in addition fo 20,000 working part-time and 70,000 people working full time. Calculate Arjunland's unemployment rate. (1 pt)

6. Arjunland's CPI is 130 in 2020 and CPI is 120 in 2019. Calculate the inflation rate in Arjunland. (1 pt). You can round to the nearest whole number if you wish.

7. Using the data from questions 1 and 2, plot out a Phillips Curve model for Arjunland. Be sure to include a Long-run Phillips curve and be sure to label your model correctly. (2 pts)

8. What economic condition is Arjunland facing? (2 pts) How fiscal policy can remedy this condition? (1 pt)

9. Using the fiscal policy remedy from Q5, show the effect of this policy change on the Phillips Curve model. (2 pts)

10. Now assume that Arjunland is in recession with a $500 million gap. Label this recession as point 'V' on the Phillips Curve model. (1 pt)

11. The MPC is .8 and Arjunland increases Consumption spending by $75 million. On you Phillips Curve model, label where Arjunland will now be due to this increased spending as point 'Z;. (3 pts)