a.An economy produces two goods: tomatoes and ketchup. It is assumed that half of the tomatoes are bought and consumed as final good; the other half is used to produce ketchup.

In 2014, 30 KGs of tomatoes are produced at Rs.60 each, and 20 KGs of ketchup are produced at Rs.200 each.

In 2015, 40 KGs of tomatoes are produced at Rs.80 each, and 30 KGs of ketchup are produced at Rs.195 each.

Find the following:

Assuming 2014 is the base year; calculate the real, nominal GDP and GDP deflator in 2014 and 2015.

b. Suppose the number of employed people inAfrica is 20.5 million. The unemployment rate in this economy is 8.8 percent, and the labor force participation rate is 65 percent.

i.What is the size of the labor force and working-age population?

ii.How many people are unemployed?

c. Before June 2020, the labor market in Africa was at equilibrium with an equilibrium wage (W_E) of Rs. 15,000 and equilibrium quantity of labor (L_E) 10 million. In the last week of June, 2020, government of Africa imposed a minimum wage Act raising the minimum wage to Rs. 20,000. Using a graph, explain the effect of imposition of minimum wage on unemployment in labor market of Africa.

d. Population growth has a variety of effects on productivity. Explain this statement and justify your answer.