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During normal times, what type of unemployment is most common: cyclical, frictional, or structural? Be sure to use information from the notes to BRIEFLY explain your answer so I know it is not a guess. 8) Suppose you are wondering if discouraged workers are becoming more numerous. How might you use the labor market statistics to see if this is the case? More specifically - if the number of discouraged workers is increasing, what should be happening to the official unemployment rate and the labor force participation rate? I 9) Consider the following transactions of a company that produces computers. It sells $2 million worth of computers to the federal government. It sells $3 million worth of computers to households and sells $1 million worth of computers to local businesses. The company pays its workers $2.5 million and it pays $1.5 million for the parts to make the computers. It also just built a new production plant for $6 million. a) How much does GDP increase because of these transactions?.. b) How much does investment increase because of these transactions?

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