1- Explain the difference between macroeconomics and microeconomics. How are these two fields related? 2- Draw a circular-flow diagram. Identify the parts of the model that correspond to the flow of goods and services and the flow of dollars for each of the following activities: a. Sam pays a storekeeper $1 for a quart of milk, b. Stuart earns $10,000 from his 10 percent ownership of Acme Industrial. c. Serena spends $30 on a haircut d. Sally earns $4.50 per hour working at a fast food restaurant. 3- Classify the following topics as relating to microeconomics or macroeconomics. a. a family's decision about how much income to save b. the effect of government regulations on auto emissions c. the impact of higher national saving on economic growth d. a firm's decision about how many workers to hire e. the relationship between the inflation rate and changes in the quantity of money 4- Classify each of the following statements as positive or normative. Explain. a. Society faces a short-run trade-off between inflation and unemployment. b. A reduction in the rate of growth of money will reduce the rate of inflation. c. The Federal Reserve should reduce the rate of growth of money. d. Society ought to require welfare recipients to look for jobs. e. Lower tax rates encourage more work and more saving. 5- If you were president, would you be more interested in your economic advisers' positive views or their normative views? Why