1. Illustrate the pricipal-agent problem within the company and a possible solution to this problem considering the labour discipline model. (could you also explain labour discipline model?)

2. Explain what the central bank is, what functions it performs, and how it is related to banks.

3. Complete the following sentence based on your knowledge of interest rates, credit and debt:

" If the annual interest rate is 6%, this means that 100 euros today are equivalent to ____ euros in one year and that 100 euros available in one year are equivalent to ____ euros today. If inflation is 3%, the real interest rate will be equivalent to ____ if the nominal rate interest rate decreases from 6 to 4%, creditors are ____ because ____ ."

4. What is aggregate consumption? What does it depend on?