1. If you are the chief economist of a country experiencing high unemployment and flat GDP, what macroeconomic policies might you enact in response to these economic conditions? How would you suppose that these strategy changes to impact the economy?
2. An economy achieves macroeconomic equilibrium, explain how? How high level inflation have a macroeconomic equilibrium?
3. Joe manufacturer construct a product that sells for $1,000. In the production process, he pays $750 for wages, $125 for materials, and $ 75 for rent. Three-fourths of Joe's o/p is utilized and the rest is invested.
Clarify about both the flow of product approach and wages approach which can be used to compute GDP also the role profit plays in these calculations. Compute GDP for Joe using both the product and income approaches and show how they must agree.