5. Unemployment rates 7. Monetary policy: Civilian, non-institutional, population over 16 years of age in country X is 200 million. Of the An economy is facing an inflationary gap, see graph below. How should the Central Bank 200 million 140,000,000 are employed, and 24,000,000 are unemployed of whom react using each of the 3 monetary policy tools to eliminate the inflationary gap? (9 points) 3,000,000 are frictionally and 5,000,000 are structurally unemployed. (10 points) You must round numbers up to the nearest hundredth decimal: For example, 34.1277 = 34.13. a. Calculate the actual (or total) unemployment rate. b. Calculate the Natural Rate of Unemployment (NRU). Price Level c. Calculate the cyclical unemployment rate. d. Is this country in a recession or a boom? e. Explain your answer to part d. O ON O, Real GDP a) Open Market operations: 6. Define Fiscal Policy and explain how an expansionary fiscal policy can help an economy get out of a recession. (5 points) b) Discount rate: c) Required Reserve Ratio: 8. Open-Economy Macroeconomics: Suppose the U.S. and Japan are the only two countries in the world. What will happen to the value of the U.S. dollar (appreciates or depreciates), and the U.S. exports, as a result of the following events (other things equal)? a. The United States imposes import tariffs on many Japanese goods. (3 points) b. Interest rates on savings bonds in the United States rise relative to interest rate on Japanese savings bonds. (3 points)