1. The economy of Snowland reported the following data: The labour force as 19.02 million; employment as 17.69 million and the working age population as 27.98 million. Based on these figures, calculate the following.
a. The number of people employed.
b. The unemployment rate
c. The labour force participation rate
d. The employment to population ration.
2. The CPI for Copa Republic was 115.9 in December 2010, 120.6 in December 2011 and 129.2 in
December 2012.
a. What do these numbers tell you about the price level in these three years ?
b. calculate the inflation rates for the years ended December 2011 and December 2012.
c. How did the inflation rate change in 2012
d. Why might these CPI numbers be biased ?
e. How do alternative price indexes help to avoid the bias in the CPI numbers ?