Unemployment and inflation 15. List and explain the three major types of unemployment. (3 marks) 16. Explain the differences between the unemployment rate and the labor-force participation rate. (2 marks) 17. What does the consumer price index (CPI) represents and explain how inflation can redistribute income. (3 marks) Labor force participation rate 75% Total population 16 years of age and older 200 million Unemployment rate 10% 18. Refer to Table above calculate: a. The labor force (1 marks) (1 marks) b. The total number of people unemployed c. The total number of people employed (1 marks) 19. If the CPI in 2007 was 114.7 and the CPI in 2008 was 124.5, calculate the rate of inflation between 2007 and 2008. (1 marks)