Discussion:
1- Explain why Macroeconomics uses Aggregate indicators
2- Describe the differences between a Depression and a Recession. Refer to: Levels of Outputt Unemployment, Level of the Prices
3- If economic activity fluctuates in time: How is long term Growth possible?
Refer to the Production Possibilities Frontier and its components
4-The Production Possibilities Frontier shows a combination of Capital and Consumption goods. If the combination shows that production of Capital Goods is bigger than that of Consumption Goods:
a) What would be the future effect in the PPF?
b) Mention 2 causes that increase Productivity and Production
5-Given the Expenditure Side of Aggregate Output in the Economy:
Personal Consumption $200
Government Purchases 50
Gross Private Investment 40
Exports 30
Imports 40
a) Calculate the Gross Domestic Product
b) Calculate the Net Exports
c) Why only Final Sale Prices are included in the GDP?
6- When the Economy is at the point of Full Employment, is the Unemployment Rate zero percent?
Explain why?
7- When the Economy is at the point of Full Employment, is the Unemployment Rate zero percent?
8-What does the Consumer Price Index measures? Explain how is calculated.
9-Explain the difference between Deflation and Disinflation. Explain why one of the them brings positive effects to the economy and the other negative effects
10-Which group of economic decision makers plays the leading role in the Economic System? Why?
a) Mention two types of resources and how are they paid for in the economy.