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  1. What is the importance in macroeconomics of measuring per capita GDP? Provide examples and explain your answer.
  2. Frictional unemployment seems to depend on the age distribution of the population. Describe why this is so.
  3. What is CPI and how is it calculated? What is the problem with how it is calculated that statisticians have paid considerable attention to in recent years? Provide examples and explain your answer.
  4. What is double counting and why must it be avoided when measuring GDP? How do statisticians avoid the problem? Provide examples and explain your answer.
  5. Write in paragraph form. Provide examples and explain your answer. If inflation rises unexpectedly by 5%, indicate for each of the following whether the economic actor is helped, hurt, or unaffected:

A union member with a COLA wage contract

Someone with a large stash of cash in a safe deposit box

A bank lending money at a fixed rate of interest

A person who is not due to receive a pay raise for another 11 months

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