1. Labor Market

Suppose there is a town with 2,500,000 people. 850,000 of these people work full-time while 700,000 work part-time. 275,000 of these part-time workers want to work more hours, but are not permitted to do so by their respective employers. Another 350,000 individuals in this town are under the age of 16. 600,000 other individuals are currently not working. 425,000 of these individuals are actively seeking work, while 175,000 individuals have given up looking for a job. Of the 425,000 who are actively seeking work, 175,000 lost their jobs and still have not gotten them back due to the effects on business losing demand due to COVID-19. 100,000 of the 425,000 lost their jobs due to technological advancements, and the remaining 150,000 are not working due to normal turnover in the labor force.

Complete parts a, b, and c.

a. Solve for the number of individuals in the labor force in this community.

b. Solve for the current unemployment rate in this community.

c. Solve for the total number of hidden or disguised unemployed in this town.

2. Expenditures and Income Approaches (16 points)

Consumption Expenditures $69000

Wages $76000

Taxes on Production and Imports $16000

Government Purchases $58000

Statistical Discrepancy $11000

Imports $47000

Undistributed Corporate Profits $14000

Rent $42000

Proprietor's Income $15000

Exports $34000

Dividends $22000

Depreciation $24000

Interest $31000

Gross Private Domestic Investment $41000

Corporate Income Taxes $18000

Corporate Profits $54000

Net Foreign Factor Income $17000

Complete parts a and b.

a. Given the numbers above, solve for Real GDP using the expenditures approach.

b. Given the numbers above, solve for the National Income (NI).