QUESTION 5 Assume that the employment data for Lalaland are as follows: 243,190 Population aged 16 and above Army 1,705 Labour force 161,600 Unemployed 7,757 a) Calculate: i. ii. iii. the unemployment rates. iv. the unemployment rate if army were counted in the labour force. b) Categorize each of the individuals below as either frictionally, structurally, or cyclically unemployed. i. the number of people (16 years old and over) not in the labour force. the number of people employed. Kamal is an auto worker from BMW who has been laid off because of the recent sharp decline in GDP, which has resulted in a severe decrease in auto sales. ii. Danial was no longer fit to work in the coal mines because of new automated mining techniques. Arif, an aerospace engineer, was unemployed because of large decrease in defence spending. Since the space program is also on a tight budget, Arif has not been able to get alternative jobs for the past two months. Latoya quits her job as a salesperson out of frustration stemming from her lack of promotion. She begins to look for a management position in a similar work setting. iii. iv. c) Lalaland also have the following consumer price index (CPI). Complete the table with inflation rate values from the year 2015 to the year 2020. Year 2014 2015 2016 2017 2018 2019 2020 Price Index 71.47 76.85 80.13 82.13 83.76 84.72 86.10 Inflation Rate 7.0 d) With the aid of a diagram, explain the short-run and long-run relationship between inflation and unemployment.