6) Assume the CPI was 100.0 in 2002 and 125.2 in 2014. Jan's wage at ABC Innovation was $60,000 in 2002 and had increased to $70,00 by 2014. After adjusting for inflation, what was Jan's "real" wage in 2014 relative to what she was earning in 2002? (2 marks)

7) Identify which unemployment condition (seasonal, structural, cyclical, frictional) best describes the situation of each of the following individuals. (1 mark each)

a)a wristwatch repairman that was laid off as most people use their cell phone to check the time and few people are buying watches worthwhile repairing. _________________ unemployment

b) a digital artist who lost her job with an advertising company during a recession in the economy. ________________ unemployment

c) a marketing manager who quit her job to look for another similar marketing job which provides a higher salary and more benefits. ___________________ unemployment

8) On January 1, 2019, Seabreeze Construction Company owned 4 dump trucks, 2 excavators and other construction machinery with a total value of $950,000. During 2019, Seabreeze Construction bought two new trucks paying a total of $120,000. On December 31, 2019, the market value of all the firm's trucks and construction machinery was $1,020,000. (1 mark each)

a)What was Seabreeze's gross investment in 2019?

b)What was the amount of depreciation in 2019?

c)What was the net investment in 2019?

9) Suppose that the government starts with a debt of $10 billion. Then in year 1 there is a deficit of $50 billion, in year 2 there is a deficit of $70 billion, in year 3 there is a surplus of $40 billion, and in year 4 there is a deficit of $20 billion. What is the government debt at the end of year 4? (2 marks)

10) The imaginary country of Acordia lists the following projected revenues and outlays for 2020: $30 million in personal income tax, $20 million in corporate income tax, $7 million in indirect taxes, $2 million in investment income, $35 million in transfer payments, $14 million in government expenditures, and $4 million in debt interest. What is the projected budget surplus (or deficit) for 2021? Calculate the amount and indicate whether it is a surplus or deficit. (3 marks)

11) Using the Bank of Canada Inflation Calculator at the site shown below, calculate what would be the value in 2018 of a house in Toronto that cost $15,000 in 1964. Assume that over those years the house increased in value each year at the rate of inflation. (1 mark each)

Note: Instructions on how to use the Inflation Calculator are provided at the site.

Value in 1964: $ 15,000

a)Value in 2018: $ __________________

b)What was the average annual rate of inflation during the period from 1964 to 2018? ____________

Bank of Canada site - https://www.bankofcanada.ca/rates/related/inflation-calculator