d) found by dividing total unemployment by the size of the labor force. PART II: EXERCISES 10 marks 1. Given the data below for the year 2021 ($, billion) calculate: i . Gross Domestic Product (GDP) at current (2021) prices. ii. Gross Domestic Product (GDP) at constant (1997) prices. Consumption 9.00 Exports 0.55 Government purchases 4.25 Gross investments 1.55 Imports 0.25 Indirect business taxes 11.25 Payment of factor income to the rest of the world 2.50 Receipt of factor income from the rest of the world 2.70 Interest rate (%) 5.75 Retail Price Index (1997) --(Base Year 1997) 104.20 Retail Price Index (1998) 104.53 Retail Price Index (1999) 107.93 Retail Price Index (2000) 109.13 Retail Price Index (2010) 137.60 iii. Explain why there is a difference between the GDP at 2021 prices and the GDP at 1997 prices. 2. You are given the following data ($, bn): Income (Y) Consumption Investment Government Exports (X) Imports (M) Aggregate (C) (I) Purchases (G Expenditure (AE) 0 200 220 180 0 900 630 200 220 180 180 1,000 700 200 220 180 200 1,100 770 200 220 180 220 1,200 840 200 220 180 240 1,300 910 200 220 180 260 1,400 980 200 220 180 280 1,500 1,050 200 220 180 300 a. Calculate the different levels of aggregate expenditure. b. Specify the equilibrium level of output and income. Explain. Choose the right answers for multiple-choice questions 1-20 (Part I, 10%) and solve both exercises (Part II, 10%) - Thursday, May 26, 2022