Q31.Answer all the following questions.

a. The Bureau of Labor Statistics counts as employed people who work part-time, but would prefer to work full-time. Suppose the people who had part-time jobs, but wanted full-time jobs, were counted as unemployed. Explain how the unemployment rate and the labor force participation rate would change.

b. Suppose you obtain a fixed rate mortgage during a period of relatively high inflation. During the next ten years, inflation falls. Did you gain or lose from the lower inflation rate? Explain why.

c. Would the maximum loan that a bank can make be different when receiving a discount loan from the Federal Reserve of $100 million versus receiving a checking account deposit of $100 million? Explain why or why not.