Compute price level given the CPI, explaining labor marketplace mobility.
1.Suppose you bought a bag of groceries at Food Lion this past September for $46.54. Calculate the price of a similar bag of groceries in 1999 prices if the CPI for food and beverages in September 1999 was 165.1 and for September 2009 it was 217.617.
2.Suppose the government decides to pass a law that requires all businesses to delay all future layoffs, giving at least 3 months notice to any workers they plan to lay off. What will be the impact of this law on the country's unemployment rate over time? Discuss how labor market mobility affects the unemployment rate.