Discussion:
1.In what ways are national income statistics useful?
2.Explain why an economy's output, in essence, is also its income.
3.Why are changes in inventories included as part of invest- ment spending? Suppose inventories declined by $1 billion during 2008. How would this affect the size of gross private domestic investment and gross domestic product in 2008?
4.Why are changes in inventories included as part of invest- ment spending? Suppose inventories declined by $1 billion during 2008. How would this affect the size of gross private domestic investment and gross domestic product in 2008? Explain.
5.What factors make it difficult to determine the unemploy- ment rate? Why is it difficult to distinguish between frictional, structural, and cyclical unemployment? Why is unemploy- ment an economic problem? What are the consequences of a negative GDP gap? What are the noneconomic effects of unemployment?
6. explain public debt.