1. The inflation over four consecutive quarter is f1=1%, f2=0.5%, f3=-0.5%, f4=1%. What is the inflation for the entire year?
2. Why the Is curve can be shifted by the change in government spending or taxation but not by the change in investment?
3. What is the real money (M/P) in the LM curve ? Why the denominator is price? How is it different from M in the money demand and money supply graph?
4. Why do nations trade? Analyze American imports and exports.