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Question 1:
a. Compute the employment rate and the level of productivity (GDP per employed worker) for each year shown in the table above.
b. For each five-year period, compute the percentage change in the labour force, the employment rate and the level of productivity.
c. For each five-year period, what fraction of the percentage change in GDP can be accounted for by the change in the employment rate?
d. Over the entire 50-year period, what fraction of the percentage change in GDP can be accounted for by the change in the employment rate?
e. Explain the differences that you detect between (c) and (d).
Using the monetary tool(s) of your choice what would you do? You need to graph a money demand and supply graph, an Investment graph, and a GDP graph to show how monetary policy effects GDP.
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