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When Output and Spending Differ What role do inventories play in determining real GDP demanded?
What equalities hold at the level of real GDP demanded? When determining real GDP demanded, what do we assume about the price level?
What are the leakages from and injections into the circular flow? How are leakages and injections related in the circular flow?
Explain why intermediate goods and services usually are not included directly in GDP. Are there any circumstances under which they would be included directly?
Compare and contrast what the leading indicators in the two countries are forecasting.
Read the article The Growth Imperative. What did the author David Brooks suggest as remedies for the poor condition of the U.S. business cycle?
Use an aggregate demand/aggregate supply diagram to show what effect was intended. What might happen if such a tax cut also shifted the aggregate demand curve?
What were some of the causes of the stagflations of 1973 and 1979? In what ways were these episodes of stagflation different from the Great Depression of 1930s?
Case Study: Price Check on Aisle. What is the hedonic method and why is it sometimes used to track changes in the consumer price index?
Case Study: GDP and The State of the USA. Is The State of the USA designed to replace GDP as the primary measure of economic performance?
The health expenditure component of the GDP price index has been rising steadily. How might this index be biased by quality and substitution effects?
Consumer Price Index One form of the CPI that has been advocated by lobbying groups. Should the BLS produce such an index for the elderly?
GDP and Depreciation What is gross about gross domestic product? Could an economy enjoy a constant-or growing- GDP while not replacing worn-out capital?
Both goods have been decreasing in price and improving in quality. What problems does this pose for people responsible for calculating a price index?
Explain why net inventory increases are counted as part of GDP. Discuss why it is not sufficient to measure the level of inventories only for the current year.
The Meaning of Full Employment When the economy is at full employment, is the unemployment rate at zero percent? Why or why not?
Using the Internet, identify one (1) example of a large company that has (or might be) engaged in anticompetitive behavior.
In addition, because of the improving economic conditions, the labor force increases by 200,000. Would the unemployment rate go up or down?
Does the overall unemployment rate provide an accurate picture of the impact of unemployment on all U.S. population groups?
Why do you suppose portion of final goods expenditures that goes to pay for intermediate goods or raw materials is excluded from income method of calculation?
Global Economic Watch Go to the Global Economic Crisis Resource Center. Write a summary of an article about a price index in a foreign country.
Calculate the current year's cost of the market basket and the value of the current year's price index.
International Comparisons of Unemployment- How has the U.S. unemployment rate compared with rates in other major economies?
What factors could make the official rate overstate the actual unemployment rate?
Which had problems with high inflation, the increased use of another country's currency (such as the U.S. dollar or South African rand) became common.