Information that was given:

Employment data (Civilian-non-military and non-institutionalized, over 16)

Types of unemployment; Structural 3%

Population (available for work): 120 million

Full time workers 75 million

Part-time workers by own choice 10 million

Part time workers due to economic deficiencies 10 million

Discouraged worker 10 million

Unemployed 12 million

Inflation

CPI =5.3% PCE=5.4% GDP deflator 124 PPI 110

Central Bank

Reserve requirement (rr) = 2% Discount rate = 2% Fed rate = 1%

Domestic Economy

Present (actual) Real Gross Domestic Product (GDP) = $17 trillion

Potential output (GDP) - $22 trillion

Marginal propensity to consume (MPC) = 0.9

National debt = $27 trillion

Foreign currency exchange: $1.05 US dollars = 1 Schnurland dollar

I'm stuck on these two questions how the AD/AS.

2) If the short run aggregate demand curve has shifted out, the type of inflation we would expect to have is

___________. This would create domestic economy experiencing _________ (high or low) price level and

(high or low) ________ unemployment.

3) A) The gap that the economy is experiencing is a _____________ gap. Explain?

B) What is the Debt to GDP ratio in %? _________

C) What is the present simple multiplier? _____