1)Macroeconomics is mainly concerned about growth and unemployment. Why these two topics are important?

2)Why is unemployment an economic problem? What are the non-economic effects ofunemployment?

3)Distinguish between demand-pull inflation and cost-push inflation. Which of the two types is mostlikelytobe associatedwitha (negative)GDPgap?

4)Assume thatapainterproduces 20paintings this yearand20paintingsnextyear. Whatis theannual change in nominal GPD if the price of paintings rises from $1,000 this year to $1,500 nextyear? Can you conclude that the economy grew from this year to next year based on your answer?Why?

5)Describe the relationship between unemployment and inflation and whether the relationship isstable.