Please answer all questions showing full workout

Topic 2.3- Unemployment (continued) 13. Fully explain why "full 9. Define and give an example of frictional unemployment. employment" does not mean 0% unemployment 10. Define and give an example of structural unemployment. 11 . Define and give an example of cyclical unemployment . 12 . What is the natural rate of unemployment ? Topic 2.4- Price Indices and Inflation 1. What is the Consumer Price Index (CPI)? 6 . What is the GDP Deflator ? 2 . Identify the equation for the CPI . 7 . Identify the equation for the GDP deflator 3. Assume the value of a market basket for a given year 8 . The nominal GDP is $100 billion and the real GDP is is $550 and the same basket in the base year was $80 billion. Calculate the GDP deflator. $500. Calculate the CPI. 4. If the CPI for a given year is 90 then the change in prices between that year and the base year is 9. The Real GDP is $100 billion and the GDP deflator is %. 200. Calculate the nominal GDP. 5. Fill in the blanks. Start with 2009 as the base year 10. The real GDP is $200 billion and the GDP deflator is then recalculate with 2010 as the base year. 120. Calculate the nominal GDP. Year Market Base Year Base Year Basket 2009 2010 11. The nominal GDP is $300 billion and the GDP deflator is 150. Calculate the real GDP. 2009 $20 100 2010 $40 100 12. The nominal GDP is $100 billion and the GDP deflator 2011 $50 is 125. Calculate the real GDP. Topic 2.5- Costs of Inflation Topic 2.6- Real v. Nominal GDP 1. Identify who is hurt and who is helped by unexpected 1. What is the difference between the nominal GDP and the inflation. real GDP