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Label each of the following scenarios as either frictional unemployment, structural unemployment, or cyclical unemployment. a. Tim just graduated and is looking for a job: (Click to select) b. A recession causes a local factory to lay off 30 workers: [(Click to select) c. Thousands of bus and truck drivers permanently lose their jobs when driverless, computer-driven vehicles make human drivers redundant: (Click to select) d. Hundreds of Toronto legal jobs permanently disappear when a lot of legal work gets outsourced to lawyers in India: (Click to select)Assume the following data for a country: Number of people Category (millions) Total population 500 Population under 15 years of age or institutionalized 120 Not in labor force 150 Unemployed 23 Part-time workers looking for full-time jobs 10 Instructions: Enter whole numbers for your answers below. What is the size of the labor force? million What is the official unemployment rate? %Suppose that the natural rate of unemployment in a particular year is 6 percent and the actual rate of unemployment is 13 percent. Use Okun's law to determine the size of the GDP gap in percentage-point terms. If the potential GDP is $500 billion in that year, how much output is being forgone because of cyclical unemployment? Instructions: Enter whole numbers for your answers below. GDP gap = |:| 96 Forgone output = $ |: billion If the CPI was 120 last year and is 138 this year, what is this year's rate of inflation? Instructions: Round your answer to two decimal places. % In contrast, suppose that the CPI was 120 last year and is 116 this year. What is this year's rate of inflation? Instructions: Round your answer to two decimal places. % What term do economists use to describe this second outcome? (Click to select)If your nominal income rose by 6.30 percent and the price level rose by 3.30 percent in some year, by what approximate percentage would your real income increase? Instruction: Round your answer to one decimal place. 96 If your nominal income rose by 3.80 percent and your real income rose by 1.20 percent in some year, what must have been the approximate rate of inflation? Instruction: Round your answers to one decimal place. 96 Suppose the ination premium is 9.50 percent and the nominal interest rate is 4.75 percent. Instructions: In part a and b, round your answers to 2 decimal places. If you are entering any negative numbers be sure to include a negative sign H in front of those numbers. a. What is the real interest rate? :I b. What if the inflation premium is 10.50 percent while the nominal interest rate is 2.40 percent? :I
