1)Explain what we mean when we say that there are "diminishing marginal returns with one factor fixed." How can this phenomenon be resolved with he continually grow levels of productivity in the U.S economy?

2) The economy has 100,000 adults , 10,000 are full time students and 20,000 are retired, the rest are either working or looking for work,and of those 7,000 are looking for work. How big is the labor farce/ what is the labor forc participation rate? What is the unemployment rate? Suppose 2,000 of those students only chose to go to school because the economy was in a recession and theit labor market options were very poor. Under those circumstances , how dose the unemployment rate misrepresent the situation in the macro economy?

3) What is the natural rate of unemployment? what are some people unemployed when the economy is factioning well and there are plenty of firms hiring? Prove one reason why the natural unemployment rate might be very high sometimes and very low at other times.

4)Prove three explanations for why wages don't fall when unemployment gets high and there are large numbers of people looking for work.