State whether the following statements are True, False, Uncertain and explain

1. Workers like inflation since it raises their wages. 2. Improvements in health that increase the elderly population tend to increase the unemployment rate. 3. Gross domestic product is the total market value of all final and intermediate goods and services produced within a country in a given time period. 4. The series of ups and downs the economy tends to move in is called a depression. 5. Short down is not a phase or turning point of the business cycle? 6. Potential GDP is the same as real GDP. 7. Using the official measure of unemployment, which of the following would NOT be counted as unemployed? A) A person who is not working but who has tried to find a job in the past week B) A person who is waiting to be called back to a job after having been laid off C) A person who performs traditional housework and does not work outside the home for pay D) A person who is waiting to start a new job in the next 30 days 8. The unemployment rate is the ________ who are unemployed. A) Number of people in the labor force B) Percentage of people in the labor force C) Percentage of people in the country D) Percentage of the working-age population 9. The circular flow shows that aggregate spending is larger than aggregate income because people save. 10. The expenditure approach to measuring GDP includes firms' spending on wages. (2 marks) 11. The business cycle progresses from an expansion to a peak to a recession and then to a trough. 12. A recession occurs when real GDP decreases for at least 6 months. (2 marks)

Provide detailed answers to the following questions

1. A country has a total population of about 1000 people, 564 are working and 36 are looking for a job. a) What is the size of the labor force? (2 marks) b) What are the participation rate and unemployment rate?

2. Suppose the current unemployment rate is 5 percent, the labor force is 400 million people, the labor force participation rate is 80 percent and the working-age population is 500 million people. What number of people are unemployed?

3. Suppose that a farmer grows wheat, which she sells to a miller for N$10. The miller turns the wheat into flour, which she sells to a baker for N$55. The baker turns the wheat into bread, which she sells to consumers for N$140. Consumers eat the bread. What is GDP in this economy?

4. Consider the following table below showing the breakdown of GDP (in billions of N$) for Namibia. Using the expenditure approach, calculate GDP for Namibia.

GDP Category	Amount (in billions)
Consumption	1700
Investment	700
Government Expenditure	100
Exports	50
Imports	40

5. Suppose that GDP in Namibia was N$1,030 in 2020 and then grows to N$1160 in 2021 (all numbers in billions). What is the growth rate of GDP in Namibia?

6. Suppose that the level of income is N$1000 and the tax rate is 10%. Given this data, what is the level of disposable income?

7. State and explain the different types of unemployment (10 marks)