Question 1: Describe the various components of fluctuations in economy activity over time. Because economic activity fluctuates, how is long-term growth possible?
Question 2: Why do economists pay more attention to national economies than to state or provincial economies?
Question 3: How did the September 11, 2001, terrorist attacks on the World Trade Center and the Pentagon affected short- and/or long-term productivity in the United States?
Question 4: How do the aggregate demand and aggregate supply curves differ from the market curves?
Question 5: How is the U.S. budget deficit related to the foreign trade deficit?
Question 6: Why would the following investment expenditures increase as the interest rate declines?
a. Purchases of a new plant and equipment
b. Construction of new housing
c. Increased inventories
Question 7: Explain why intermediate goods and services usually are not included directly in GDP. Are there any circumstances under which they would be included directly?