Assignment:
I. According to the Venezuelan Nationa) Institute of Statistics, the Consumer Price Index (CPI) and Gross Domestic Product (GDP) for the period 2009-2016 are as shown on Table 1:
CPl, GDP and Unemployment 2009-2016
Year CPl GDP(Current $) Unemployment
2009 100.0 494,591,535 5.2%
2010 130.9 677,593,637 5.2%
2011 163.7 707,262,549 6.1%
2012 208.2 1,016,834,748 5.8%
2013 265.6 1,357,487,061 5.6%
2014 318.9 1,635,451,060 5.7%
2015 498.1 2,245,843,966 5.8%
2016 839.5 3,031,242,431 5.4%
The Venezuelan government wants to close 2017 exactly at the same level of 2011 In order to achieve that, you are required to come up with a tax policy that changes the amount of taxes to be collected by the Venezuelan Internal Revenue Service. What type of policy and magnitude should be implemented?
II. Using the data from Table 1, calculate the rate of inflation and its type for each year during them period 2009-2016.
III. Table 2 shows information for the Venezuelan labor market in 2016.
Population 25,000,000
Military 350,000
Under 16 Years of Age 6,500,000
Institutionalized 150,000
Employed 14,000,000
Not employed Not looking for a job 900,000
Not employed lost his/her job for unskilled 350,000
Not employed switching jobs 200,000
Not Employed cannot find a job 2,550,000
Determine the rates of cyclical, structural, frictional and total unemployment.