Given the following information for a country: Total Population: 45,000,000… 1 answer below »

Given the following information for a country:
Total Population: 45,000,000
Labour Force Population: 38,000,000
Not in the Labour Force: 7,000,000
Labour Force: 31,000,000
Employed: ___________
Unemployed: 2,000,000
a) How many people are in the Employed category? (2 mark) ___________________
b) Calculate the Unemployment Rate. Show calculations. (2 mark) Show work.
c) Calculate the Labour Force Participation Rate (2 mark) Show work.
2) Calculate the inflation rate experienced in 2014 and 2015 given the CPI for each year below: (2 marks each) Show work.
Year CPI (as of December 31 of the year) Inflation rate (%) 2013 124 Not applicable for 2013 2014 126 2015 127.5
3) Calculate the nominal GDP and real GDP for the years shown. Assume that the economy only produces one product (microchips). The base year is 2014. Current price refers to the price obtained for each microchip in the year produced. (1 marks each blank)
Year Production output of computer
microchips Current prices Output at current prices
(Nominal GDP) $ Output at 2014 prices
(Real GDP)
$ 2014 1,000 $0.20 2015 2,000 $0.30 2016 2,500 $0.40
4) Assume the CPI (Consumer Price Index) basket of goods and services was 100 in 2002, and 128 in 2014.
a)By what percentage did prices rise over the period from 2002 to 2014?
Answer_______________ % (2 marks)
b)Jan’s wage at ABC Innovation was $48,000 in 2002 and had increased to $60,00 by 2014. What was Jan’s “real” wage in 2014 relative to what she was earning in 2002 after adjusting for inflation? (2 marks)
5) Identify which unemployment condition (seasonal, structural, cyclical, frictional) best describes the situation of each of the following individuals. (1 mark each)
a) a wristwatch repairman that was laid off as most people use their cell phone to check the time and few people are buying watches worthwhile repairing. _________________ unemployment
b) a farm worker who is unemployed during the winter months. ________________ unemployment
c) a digital artist who lost her job with an advertising company during a recession in the economy. ________________ unemployment
d) a marketing manager who quit her job to look for another similar marketing job which provides a higher salary and more benefits. ___________________ unemployment
6) Using the Bank of Canada Inflation Calculator at the site shown below, calculate what would be the value in 2017 of a house in Toronto that cost $15,000 in 1964. Assume that over those years the house increased in value each year at the rate of inflation. (2 marks)
Note: Instructions on how to use the Inflation Calculator are provided at the site
Value in 1964: $ 15,000
Value in 2017: $ __________________
Bank of Canada site – https://www.bankofcanada.ca/rates/related/inflation-calculator
TOTAL: 26 marks