Homework
• Keynes economic theory was developed in large part as response to the apparent failure of the Classical economic theory during the Great Depression. Explain Keynes' four main criticisms of classical economic theory.
• List and describe the six categories of economic exchanges that are omitted from GDP calculations. Explain why these transactions are not included in GDP and give an example of each to help support your answer.
• i. Explain with the use of examples the following definitions of unemployment. Highlight any relationships that may exist between them
o Frictional Unemployment;
o Structural Unemployment;
o Cyclical Unemployment;
o Natural Unemployment.
ii. Explain what is meant by full employment in macroeconomics and explain why the unemployment rate might well be greater than zero at full employment.
• Discuss the dangers of inflation; that is, why may it hurt an economy?
Format your homework according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the homework, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.