Subject: Economic Development

Instructions: All solutions and final answers must be handwritten. Encircle your final answers. Round off your final answers in two decimal places. Given: Full employment rate = 90% Labor force participation rate = 80% Inflation rate 2000(b=1908) = 12.50% # of underemployed and unemployed = 10 million Nominal wage (2000) = P 220 per day PCRGDP 2000 (b=1998) = P 16,000 Population = 1,000 Compute: 1. Labor Force (40 pts) 2. NGDP 2000 (40 pts) 2. Real wage per day 2000 (b= 1998) (20 pts)