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1. In what ways are national income statistics useful?

2. Explain why an economy's output, in essence, is also its income.

3. Why are changes in inventories included as part of invest- ment spending? Suppose inventories declined by $1 billion during 2008. How would this affect the size of gross private domestic investment and gross domestic product in 2008?

4. Why are changes in inventories included as part of invest- ment spending? Suppose inventories declined by $1 billion during 2008. How would this affect the size of gross private domestic investment and gross domestic product in 2008? Explain.

5. . What factors make it difficult to determine the unemploy- ment rate? Why is it difficult to distinguish between frictional, structural, and cyclical unemployment? Why is unemploy- ment an economic problem? What are the consequences of a negative GDP gap? What are the noneconomic effects of unemployment?

6. explain public debt.

Microeconomics, Economics

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