Discussion:
The Macro Economic Environment and Its Measurement GDP
(1) What are different methods of calculating GDP. Explain.
(2) What is the difference between Nominal GDP and Real GDP? And GDP deflator!
(3) Explain the elements of the equation used for calculating GDP.
Business Cycle and the economic growth
(4) Explain the four phases of a business cycle with the help of a diagram.
(5) Discuss how the economic growth of a country is affected by the business cycle.
(6) What government policies need to be formulated to combat the effect of business cycle?
Inflation and Unemployment
(7) Discuss inflation and two types of inflation.
(8) How these two types of inflation affect the economy, GDP and economic growth.
(9) Can these two types happen at the same time?
(10) What government policies can minimize the effect of these types of inflation?
(11) What are the types of unemployment and how these affect the economic growth and GDP of the country?
(12) How to calculate the rate of unemployment!
(13) What do you understand by hidden unemployment?
Fiscal Policy and Monetary policy
(14) Discuss three types of Fiscal policies and its affect on GDP and economic growth.
(15) Explain two types of monetary policies RBA can have and its affect on country's economic growth and GDP.
(16) Explain some of the important indicators of economic growth.