The following macroeconomic data are from a fictitious country's economy in 2018. Dollar values are measured in billions of 2018 dollars, and population figures are measured in millions. Assume the country's economy is in short- run equilibrium. (a) Calculate the actual rate of unemployment. Show your work. (b) Is the economy facing a recessionary gap, an inflationary gap, or neither? Explain using numbers. (c) Based on your answer to part (b), how will the economy adjust in the long run in the absence of any government policy action? Explain. (d) Now assume the economy is in long-run equilibrium. (1) Assume autonomous consumption spending increases by $10 billion and the marginal propensity to save is 0.4. Calculate the maximum possible change in real output. Show your work. (ii) Based on the change in autonomous consumption spending, what will happen to the equilibrium price level in the short run? Explain. (e) Based on the change in real output identified in part (d)0), is the actual rate of unemployment greater than, less than or equal to the natural rate of unemployment in the short run? Explain. (1) Based on loanable funds market analysis, how will an increase in tax revenue affect the equilibrium real interest rate? Explain. $300 50 $75 Population Labor Force Employed 40 $35 30 Consumption Investment Exports Imports Government Spending Taxes Potential Real Output S40 $50 Expected Inflation Rate 5% $20 $500