21. What you mean by business cycles? What are their consequences? 22. All industrialized countries have become "service economies" in recent decades. Explain the reasons behind this shift. 25. Draw a production possibilities frontier for an economy, with the axes labeled "military goods" and "peace goods." Indicate the region that is attainable and the region that is not. Explain the shape of the curve-what assumptions did you make in drawing it? 26. Why is it inefficient for an economy to be inside the production possibilities frontier? 27. What is an aggregate? How is it used in macroeconomics? Give two examples of specific aggregates that are used in the study of macroeconomics. 28. What are the two basic principles of aggregation? 29. What is Gross Domestic Product? What is included in this statistic? What is excluded? Give two examples of goods or services that are included in GDP and two examples of goods or services that are excluded. 30) Which of the following items are included in GDP? For those items not included, explain why they are not included in GDP.a. Jane buys newly issued shares of stock in Macro.com, Inc.b. Ross buys a new pair of jeans at a local department store.c. Joey has his mustache trimmed at his hair salon.d. Rachel buys an antique chest at a resale shop.e. Monica makes her own pasta sauce in her apartment.f. Phoebe grows her own herbs on her apartment balcony.g. Michael travels to Austria and buys wine and cheese.
21. What you mean by business cycles? What are their consequences?
22. All industrialized countries have become "service economies" in recent decades. Explain the reasons behind this shift.
25. Draw a
26. Why is it inefficient for an economy to be inside the production possibilities frontier?
27. What is an aggregate? How is it used in
28. What are the two basic principles of aggregation?
29. What is
30) Which of the following items are included in GDP? For those items not included, explain why they are not included in GDP.
a. Jane buys newly issued shares of stock in Macro.com, Inc.
b. Ross buys a new pair of jeans at a local department store.
c. Joey has his mustache trimmed at his hair salon.
d. Rachel buys an antique chest at a resale shop.
e. Monica makes her own pasta sauce in her apartment.
f. Phoebe grows her own herbs on her apartment balcony.
g. Michael travels to Austria and buys wine and cheese.
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