1) Suppose that your annual (nominal) salary in 2015 was $20,000. Suppose that the CPI had a value of 80 in 2015 and of 84 in 2016. Suppose also that the real increase in your salary between 2015 and 2016 was 2%. What was your annual (nominal) salary in 2016?
2) a) In 2016 the US labor force was 159,186 thousands of persons and there were 7,750 thousands of unemployed. What was the number of employed persons? What was the unemployment rate? Was this unemployment rate abnormal by historical standards?
b) Briefly explain the relationship between unemployment and the position of the long-run aggregate supply curve in the AD/AS graph.