1. Define business cycle and define structural stagnation. 2. Discuss why the difference between a business cycle and structural stagnation is important to policy. 3. Define GDP, explain the two main methods for measuring it and why it is measured in this way (what accounting problems we want to prevent). 4. What income category keeps aggregate output and aggregate income equal? If an economy has a trade surplus, is domestic production higher or lower than domestic expenditures? Explain your answer. 5. Define Potential Output. In what way is potential output not purely a physical measure based on the number of workers and existing factories? 6. How does structural stagnation differ from a recession? Give historical examples of each which occurred in the world economy. 7. Briefly define what is the Current Population Survey CPS and describe what are its uses. 8. Define Unemployment Rate and underemployment. What is the difference? 9. Define the difference between Cyclical unemployment and Structural Unemployment, and the difference between Frictional Unemployment and Unemployment Duration (spell). 10. Define the "Consumer Price Index". What is it used for? 11. Answer the following questions: a. In a market economy, what is the central coordinating mechanism? b. How does a centrally planned socialist economy solve the what, how, and for whom to produce problems? c. How does a market economy solve the what, how, and for whom to produce problems? d. What is the difference between market failure and government failure? Define each. 12. Say you bought a share of Apple for $100 and a share of GameStop for $10. The price of each is currently $15. Assuming taxes are not an issue, which would you sell if you needed $15? Explain your calculations. 13. It has been reported that eating red meat is bad for your health. Using supply and demand curves, demonstrate the report's likely effect on the equilibrium price and quantity of steak sold in the market. 14. What is the opportunity cost of paying a USD$20,000 tuition in one year? 15. Are there any activities in a family that you believe should be allocated by a market? What characteristics do those activities have