1. What is the difference between nominal GDP and real GDP?

1. Why is GDP growth so important?

1. Assume the Country has the following data:

Total population- 500,000

Population under 16 - 120,000

Not in labor force - 150,000

Unemployed - 23,000

Part-time looking for full time - 10,000

What is the size of the Labor Force?____________________________

What is the "Official" unemployment rate? _______________________

What is the "actual" unemployment rate? ________________________

1. - Does the "official" CPI number reflect the real world?

1. . Does this reflect the real employment picture? Why or why not/

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1. Why must the sum of MPC and MPS equal 1?

1. Why will a reduction in the real interest rate increase business investment spending, all things being equal?

1. Why is it difficult for a country to boost its net exports by increasing its tariffs?

1. Why is the aggregate demand curve downsloping? What role does the multiplier play in shifts of the aggregate demand curve?

1. What are the government's fiscal policy options for ending severe demand-pull inflation? What are the options if a person wants to preserve the size of government?

1. Do you think it's possible to pass a balance budget amendment? Can the government actually have a balanced budget?

1. What are problems with instituting fiscal policy with regard to time lags?
2. What are the government's fiscal policy options for ending severe demand-pull inflation? What are the options if a person wants to preserve the size of government?

1. Do you think it's possible to pass a balance budget amendment? Can the government actually have a balanced budget?

1. What are problems with instituting fiscal policy with regard to time lags?What are the government's fiscal policy options for ending severe demand-pull inflation? What are the options if a person wants to preserve the size of government?

1. Do you think it's possible to pass a balance budget amendment? Can the government actually have a balanced budget?

1. What are problems with instituting fiscal policy with regard to time lags?

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1. What are the government's fiscal policy options for ending severe demand-pull inflation? What are the options if a person wants to preserve the size of government?

2. Do you think it's possible to pass a balance budget amendment? Can the government actually have a balanced budget?

3. What are problems with instituting fiscal policy with regard to time lags?