Prepare short written responses for the following five (5) questions. Answers for each question must not exceed 250 words.
Explain why real GDP might be an unreliable indicator of the standard of living.
Why does unemployment arise and what makes some unemployment unavoidable?
Consider the following statement: ‘When the average level of prices of goods and services rises, inflation rises’? Do you agree or disagree? Explain.
What is the aggregate demand (AD) curve and why does it slope downwards? Explain.
What is the long run aggregate supply (LRAS) curve and why is it vertical? Why does the short run aggregate supply curve slope upwards?