1. Describe and illustrate how each of the following events individually will affect the equilibrium price and quantity of pizza.

A. The price of mozzarella cheese rises.

B. The health hazards of hamburgers are widely publicized.

C. The population increases due to a newly constructed university.

2. What is a business cycle?

3. Identify the phases of the business cycle. Draw a business cycle, label the phases and show where the Bahamian economy is currently operating today.

1. What is in inflation? What is the definition of the consumer price index (CPI)? How is it calculated? How is inflation calculated?
2. If the 2018 CPI is 233.049 and the 2019 CPI is 229.601, what was the rate of inflation between 2018 and 2019?
3. Whom does inflation help and whom does it hurt? Why?
4. List and explain four (4) issues that society may face due to the implementation of fiscal policy.