1. Explain the three main topics that macroeconomics is concerned with.
2. Explain the major critics of how unemployment is measured
3. Explain how consumption and savings are correlated. Please explain the causality of one variable on the other (use a graph for your explanation)
4. Using the flow chart from class please explain how government, the financial markets, firms and households interact with each other (please draw the flow diagram)
5. Looking at the investment demand graph, explain the relationship between the interest rates and investments (aggregate investments)
6. Explain what makes the Aggregate Demand Curve shift?
7. Explain what makes the Aggregate Supply Curve shift?
8. Explain how the role of government during a recession? How can the government jump start the economy?