The table below shows economic information for a hypothetical economy with a flexible

exchange rate.

	2017	2018
CPI	100	115
Labour force ('000)	11000	11360
Full-time employed ('000)	7250	7920
Part-time employed ('000)	3200	3400
Net foreign debt ($ billion)	900	1000
Net foreign liabilities ($ billion)	1050	1053

1. With reference to the table, calculate the unemployment rate in 2017 and 2018. Show all working. (1.5 marks x 2 = 3 marks)

ANSWER a):

1. Explain 2 types of unemployment that we discussed in class. (2 x 2 marks = 4 marks)

ANSWER b):