1. The information in the table belowis for the economy of Mensk. Round your responses below to one decimal place.

Working-age population	25.0
Number of people in full-time employment	10.5
Number of people in part-time employment	6.0
Number of people unemployed	3.0
Number of discouraged workers	2.3
a. Unemployment rate	_________%
b. Participation rate	__________%

a. What is the unemployment rate? b. What is the participation rate?

2) Suppose that actual real GDP in Merryland is $200 billion and its potential GDP is $240 billion. If the natural rate of unemployment is 4%, what is its present unemployment rate? Present unemployment rate is ___________%

3) Look at the following graph

130 LAS (potential GDP) 120 110 AS, AS2 100 Price index 90 80 70 AD AD2 60 200 300 400 500 600 700 800 Real GDP