Macroeconomics Assignment - Week 2

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

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

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

4. Discuss the limitations of national income accounting.

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

1. What is the difference between anticipated and unanticipated inflation? How do they differ in their effects on economic agents? Does inflation have no effects on the economy if it is anticipated? Explain

2. What is meant by "quality of labor”? How does improvement in the quality of labor affect economic growth?

3. Explain how the law of diminishing marginal returns is related to the per-worker production function.

4. What is meant by industrial policy? Discuss the strengths and weaknesses of an industrial policy.

5. Describe the four types of unemployment. How do the four types differ in their effects on the economy and on the unemployed?

Instructions: I need each question (10 questions) answered in 75 words or greater. I need the book that is being used to be quoted within and I need the reference for the book in APA format. The book being used is ECON MACRO 3 by William A. McEachern. Assignment due date is Tuesday (3/12) at midnight but I need these back Tuesday (3/12) by 4:00pm so that I have time to read over and submit them. 4:00 EST. This does not have to be written in any certain form. Just type the answer underneath the question and send it that way. I have also attached a word document with the questions and instructions in it as well. Thanks so much!

When making the agreement, if you could put in there: "Each question must be 75 words or greater" and "must be submitted by 4:00 pm EST 3/12" it would make the handshake and payment come faster or you will have to re-sign another agreement. Thanks!