Econ303 Homework 2B 11. 4 points Assume an economy in which only Iphone and Samsung Galaxy are produced.In year one, 500 million Iphone are produced and consumed and its price is $260, while1300 million Galaxy are produced and consumed and its price is $200. In year two, 600million Iphone are produced and consumed and its price is $240, while 1250 millionGalaxy are produced and its price is $190.(a) Using year 1 as the base year, calculate the GDP price deflator in years 1 and 2,and calculate the rate of inflation between years 1 and 2 from the GDP deflator.(b) Using year 1 as the base year, calculate the CPI in years 1 and 2, and calculatethe CPI rate of inflation. Explain any differences in your results between parts(a) and (b).2. 2 points Suppose that the labor force participate rate is 79%, the total working-agepopulation is 100 million, and the number of unemployed is 2.5 million. Determine:(i) the labor force; (ii) the number of employed workers; (iii) the unemployment rate;and (iv) the employment/population ratio.3. 6 points Using the following data on GDP per capita in the United Kingdom, computethe average annual growth rates during each of the 5 decades and the averageannual growth rates over the 50 years.Year Real GDP per capita(2011 dollars)1960 $11,8791970 $15,3081980 $18,5711990 $24,7992000 $31,6402010 $35,6894. 8 points The production function takes the following formY = F (K, N) = zK0.3N0.7(a) Write the expressions for marginal product of labor and marginal product ofcapital.(b) Suppose that z = 150 and K = 2000. Compute the marginal product of labor forN = 1, 2, 3, 4, 5. Draw the marginal product of labor curve.(c) Suppose that the total factor productivity increases. z = 180 while K = 2000 asbefore. Recompute the marginal product of labor for N = 1, 2, 3, 4, 5. Draw thenew marginal product of labor curve and compare it with the curve you obtainedin part (a).Econ303 Homework 2B 2(d) Suppose that the total factor productivity stays the same while capital inputincreases. Now z = 150 but K = 4000. Recompute the marginal product of laborfor N = 1, 2, 3, 4, 5. Draw the new marginal product of labor curve and compareit with the curve you obtained in part
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