Assignment:
All short answers must contain information using no external research. You are required to respond in your own words using applicable examples and knowledge gained from this course. A typical short answer should be between 100 to 150 words.
QUESTION 1 Why do economists analyze the macroeconomy from both a positive and normative perspective? In your opinion, which is more important and why?
QUESTION 2 List and describe in your own words 3 determinant of aggregate demand and 3 determinants of aggregate supply.
QUESTION 3 Explain how supply or demand can be affected when the following occur:
- Oranges - after a tornado.
- Automobiles - after a major recall.
- Spinach - after the FDA announces that spinach can prevent cancer.
- Flu Vaccines - after technology was discovered to mass produce flu vaccines.
QUESTION 4 Compare and contrast the command economy, the capitalist economy, the traditional economy and the mixed economy.
QUESTION 5 What does the GDP indicate about an economy? Can a GDP be manipulated and thus provide inaccurate information about a country's economic production?