MD ENCON 201 – Country Z reports the following CPI data

3. Country Z reports the following CPI data –2012 – 952013 – 1002014 – 972015 – 96a. What does the 100 in 2013 mean? Why is the index at 100 in 2013 and not in another year?b. Describe what is happening to prices in Z in the years 2013-2015. What term is useddescribe this situation?4. Consider the following data for Country X in 2016. (All figures in millions.)Unemployed — 7Total population — 145Employed — 95Discouraged workers — 3a. Is the unemployment rate 7/102 = 6.9% or 7/145 = 4.8% or some other percentage? BrieflyExplain your answer.b. Suppose that in 2017, all of the 3 million discouraged workers become “undiscouraged” andstart to look for work. Will this raise or lower the unemployment rate? Is this good or bad forCountry X? Explain your answer.5. Briefly define cyclical unemployment. Is it a short-term or long-term problem? What is its rootcause? What is the preferred solution and how can this be accomplished?6. Sara A. voluntarily quit her job as an insurance agent to return to school full time to earn anMBA degree. With degree in hand, she is now searching for a position in management.a. Is Ms. A unemployed?b. If she is unemployed, is it cyclical, structural, or frictional unemployment? Explain youranswer.