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BE 80 WORDS EACH!!!!!!


1. An increase in the sale of new houses is often a sign that an economic expansion is coming. Why would this be the case?



2. Explain why the aggregate demand curve slopes down.



3. How is the U.S. national economy different from those of other nations?



4. What impact did the Great Depression have on the way government set policy?



5. Why is it difficult to test macroeconomic theories?



6. The GDP fails to capture changes in the availability of leisure time and often fails to reflect changes in the quality of products or in the availability of new products.” Discuss this statement. Why is this so?



7. Discuss the limitations of national income accounting.



8. Why does the consumer price index exaggerate the inflation rate?



9. Discuss what is, and what is not, included in calculating GDP.



10. Why does investment spending not equal saving in the circular flow?



11. Why do total leakages and total injections have to be equal?






McEachern, W. A. (2012). ECON Macro 3 (3rd ed.). Mason, OH: South-Western.




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