eco 561 w4 dq

75 words minimum each question with reference. new

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1. In what ways are national income statistics useful?

2. Explain why an economy’s output, in essence, is also its income.

3. Why are changes in inventories included as part of invest- ment spending? Suppose inventories declined by $1 billion during 2008. How would this affect the size of gross private domestic investment and gross domestic product in 2008?

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 4. Why are changes in inventories included as part of invest- ment spending? Suppose inventories declined by $1 billion during 2008. How would this affect the size of gross private domestic investment and gross domestic product in 2008? Explain.

5. . What factors make it difficult to determine the unemploy- ment rate? Why is it difficult to distinguish between frictional, structural, and cyclical unemployment? Why is unemploy- ment an economic problem? What are the consequences of a negative GDP gap? What are the noneconomic effects of unemployment?

6. explain public debt.