1. Using your own example explain how the macroeconomic objectives of a government might conflict.

Hint: Think about explaining a government approach to reduce unemployment but how that may in turn impact on inflation.

2. How is the demand for money related to the velocity of circulation money?

Hint: Refer to the Quantity Theory of Money: MV = PY to strengthen your explanation

3. How is the velocity of circulation of money related to inflation?

Hint: Refer to the Quantity Theory of Money: MV = PY to strengthen your explanation

4. Recent measurements have shown a significant deterioration in the quality of the Scottish seaside. Which of the following statements are compatible with this observation?Provide explanation along with correct answer.

A.The real value of GDP has increased

B.The real value of GDP remains the same

C.North Sea oil wells have dried up

D.The price of swimming costumes has gone down