Draw a graph for economic activity over time that includes all of the partsof the business cycle. Briefly describe the idea of the “great moderation”when it comes to business cycle theory.

Why is the GDP deflator not an accurate measure of inflation as it impacts a household?

Why might even real GDP be a misleading index of changes in output between 1950 and 2015 in the United States?

What are typical GDP patterns for a high-income economy like the United States in the long run and the short run?

Explain briefly whether each of the following would cause GDP to overstate or understate the degree of change in the broad standard of living. The environment becomes dirtier The crime rate declines A greater variety of goods become available to consumers Infant mortality declines

Last year, a small nation with abundant forests cut down 200 worth of trees. It then turned 100 worth of trees into 150 worth of lumber. It used 100 worth of that lumber to produce $250 worth of bookshelves. Assuming the country produces no other outputs, and there are no other inputs used in producing trees, lumber, and bookshelves, what is this nations GDP? In other words, what is the value of the final goods the nation produced including trees, lumber and bookshelves?

Why do economists use index numbers to measure the price level rather than dollar value of goods?

According to Table 19.7, how long has the average expansion lasted since the end of World War II?