• What is meant by "supply-side economics"?
• Why must the total value of saving in an economy equal the total value of investment?
• Briefly describe the effect of the business cycle on the inflation rate and the unemployment rate. Why might the unemployment rate continue to rise during the early stages of a recovery?
• Why might a supply shock lead to stagflation?
• Why do economists believe that it is important for the country's central bank to be independent of the rest of the country's central government?