Q1. Use a hypothetical example to illustrate whether you agree or disagree with the following statement: "Unemployment will go up more if the demand for labor is elastic because the demand for labor will decrease more when you have elastic demand than if demand were inelastic." Elucidate why using hypothetical numbers to illustrate your case.
Q2. What suppose that you buy a bond for $100 that pays 4 percent interest per year. How much money will you have earned when the bonds reaches maturity in five years?