The Matching Problem Into A Maximal Flow Problem

Answer Parts A and B completely. (30 points)

(Part A) Suppose nominal GDP in 2012 was $100 billion and in 2014 it was $150 billion. The general price index in 2012 was 100 and in 2014, it was 120. Between 2012 and 2014, the real GDP rose by what percent? (20 points)

(Part B) Use the following scenario to answer the questions (Part B1) and (Part B2).

In a given year in the United States, the total number of residents is 100 million, the number of residents under the age of 16 is 38 million, the number of institutionalized adults is 15 million, the number of adults who are not looking for work is 17 million, and the number of unemployed is 5 million.

(Part B1) Refer to the data in the above scenario. What is the size of the labor force in the United States for the given year? (5 points)

(Part B2) Refer to the data in the above scenario. What is the unemployment rate in the United States for the given year?


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