1.How is the labor force defined and who measures it? How is the unemployment rate calculated? Does an increase in the unemployment rate necessarily mean a decline in the size of the labor force? Why is a positive unemployment rateone more than zero percentfully compatible with full employment?2.Explain how an increase in your nominal income and a decrease in your real income might occur simultaneously. Who loses from inflation? Who gains?3.Assume the following data for a country: total population, 500; population under 16 years of age or institutionalized, 120; not in labor force, 150; unemployed, 23; parttime workers looking for full-time jobs, 10. What is the size of the labor force? What is the official unemployment rate?4.If the CPI was 110 last year and is 121 this year, what is this years rate of inflation? In contrast, suppose that the CPI was 110 last year and is 108 this year. What is this years rate of inflation? What term do economists use to describe this second outcome?5.What is the central economic idea humorously illustrated in Art Buchwalds piece, Squaring the Economic Circle? How does the central idea relate to economic recessions, on the one hand, and vigorous economic expansions, on the other?