Assignment:
Question 1.What part does consumer confidence play in GDP? Research the term "animal spirits" and how it applies to business confidence. Can you give an example of consumer confidence in your life?
Question 2.What part does the government play in economic growth? How does government spending affect aggregate demand? Can government spending help bring us out of a recession? What may be some of the side-effects of massive government spending?
Question 3.What happens to unemployment, employment and inflation during a recession? Give an example of someone you know who became unemployed: How did it affect their lives? What changes did they have to make? Did anything good come from this situation? How do changes like this affect individuals? How do they affect society in the long run?
Question 4.Why are corporate profits important? What keeps companies from getting "too much" profit?