1.) Discuss the role of expectations in the macroeconomy, including why it is important to recognize and what potential or actual impact on different macroeconomic variables they can have.

2.) In the shadow of the 2008 financial crisis, economists in 2010 were debating whether the Philippine economy was in a recession. GDP seemed to be rising, yet the unemployment rate was stuck at a high level. In thinking about the economic distress experienced during a recession, which is more important to address and why: high unemployment or falling GDP? You can only choose one.