Q1. If you are the chief economist of a country experiencing high unemployment as well as flat GDP, what macroeconomic policies might you enact in response to these economic conditions? Explain how would you expect these policy changes to impact the economy?
Q2. How macroeconomic equilibrium does an economy achieve? Elucidate what affect does a high level of inflation have on macroeconomic equilibrium?
Q3. Joe Producer makes a product that sells for $1,000. In the production process, he pays $750 for wages, $125 for materials, as well as $ 75 for rent. Three-fourths of Joe's output is consumed as well as the rest is invested. Clarify how both the flow-of-product approach as well as the earnings approach can be used to measure GDP as well as the role profit plays in these calculations. Estimate GDP for Joe by means of both the product as well as income approaches as well as show how they must agree.