1. What are the four stages of the business cycle? In which stage do you believe the U.S economy is now? Why?
2. What is the gross domestic product? What is its relationship to productivity?
3. What are the effects of inflation on an economy? What are the effects of deflation? How does the consumer price index work?
4. Explain the difference between monetary policy and fiscal policy. How does the government raise funds to cover the costs of its annual budget?
5. What is the difference between the budget deficit and the national debt?