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Question 1. Explain how the inflation measured according to the CPI and GDP deflator may differ. Question 2: a.What does the unemployment rate measure? Explain

Question 1.

Explain how the inflation measured according to the CPI and GDP deflator may differ.

Question 2:

a.What does the unemployment rate measure? Explain briefly.

b.A large number of 60-year-old currently employed workers choose to retire now. How does this affect the labour force participation rate and the unemployment rate? Explain.

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