Assignment
1. Why does the consumer price index exaggerate the inflation rate?
2. Why do total leakages and total injections have to be equal?
3. Why does investment spending not equal saving in the circular flow?
4. Discuss what is, and what is not, included in calculating GDP.
5. Discuss the limitations of national income accounting.
Your response should be at least 75 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.
Text book: McEachern, W. A. (2012). ECON Macro 3 (3rd ed.). Mason, OH: South-Western.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.