This questiоns lооks hаrder thаn it is. Reаd each question and think about what the answer might be. I know you know some of the answers to some of these questions. Every Point Counts. Application of Inflation, GDP, Income, Employment, AS, AD, Monetary and Fiscal Policy analysis all in one. Your nominal wages are 30,000 a year. The labor force is 35 million and is unchanged by the oil shock. Before the oil shock the price level was _________ and GDP was __________. The economy has been shaken by a sharp increase in the price of crude oil. Because of this oil shock the economy has moved away from its full employment level of GDP and is experiencing a 2 percent increase in the unemployment rate. The BLS released a report stating that the unemployment rate at the new equilibrium is now at 7%. Show calculations whenever possible. (a) Before the oil shock the price level was _________ and GDP was __________. (b) Estimate the CPI index in the base year. (c) How much would a basket of goods that cost $6,000 in the base year cost if the CPI is 130? (d) What is the unemployment rate in this question if the economy is operating at full employment? (e) Estimate the # of unemployed in the economy at the full employment level of GDP. (f) What type of workers do we expect to be unemployed at full employment? (g) How will this oil shock to the economy effect GDP and the Price Level? Draw the new equilibrium after the oil shock and label the new Price Level and GDP (this is not a random calculation, there is an exact GDP value that can be calculated using the information in this assignment—the Price Level cannot be calculated in this question). (h) How will this oil shock to the economy affect the Price Level? (i) How will this change in the Price Level affect your real income? (j) You have decided to ask your boss for a raise to compensate you for the effects inflation has on your real wages. What should your new wages be? When you started working the CPI was 100. The CPI has risen to 130. (k) Estimate the # of unemployed in the economy at the 7 percent unemployment rate. (l) Explain the three main categories of unemployment present when the economy is operating at a 7 % unemployment rate.