According to the circular flow of income andoutput, which of the following is nottrue?
During the course of ayear, the labor force consists of the same 1,087 people. Ofthese, 19 lack skills that employers desire and hence remain unemployed throughout the year. At the sametime, every month during theyear, 38 different people becomeunemployed, and 38 other different people who were unemployed find jobs. There is no cyclical unemployment.a.Calculate the frictional unemployment rate. (Enter your response as a percentage rounded to two decimalplaces).b. Calculate the unemployment rate. (Enter your response as a percentage rounded to two decimalplaces).c. Suppose that a system of unemployment compensation is established. Eachmonth, 38newpeople(not including the 19lacking requiredskills) continue to becomeunemployed, but each monthlygroup of newly unemployed now takes two months to find a job. Calculate the frictional unemploymentrate after this change. (Enter your response as a percentage rounded to two decimalplaces). d. After the change discussed in part (c), calculate the unemployment rate. (Enter your response as a percentage rounded to two decimalplaces). The following table gives the per loaf sales values at each stage of breadproduction:Stage of Production$ Value of SalesStage1: Seed, fertilizer$0.12Stage2: Growing $0.28Stage3: Milling$0.50Stage4: Baking$0.80Stage5: Retail price$1.15The addition to GDP from the production and sale of one loaf of bread is $1.15The table on the right shows four major price indices of the USeconomy: the Consumer Price Index(CPI), the Producer Price Index(PPI), the Personal Consumption Expenditure Index(PCE) and the GDP deflator. All four indices are used to measure inflation.3.505.246.998.74