1.Why does inflation make nominal GDP a poor measure of the increase in total production from one year to the next? Give reasons why measured GDP does not reflect total production in an economy.
2. For each of the following, indicate if the person would be classified as employed, unemployed, or not in the labour force and why:
(i) a 65-year-old man who left his job and is now working as a volunteer for 10 hours a week;
(ii) a university graduate who has not been able to find a position using her skills and is working as a wait-person for 30 hours a week; and
(iii) a manufacturing worker who is out of a job and has given up searching for a job.
