2.Which one of these macroeconomic variables(a) the inflation rate, (b) the interest rate, (c) the labor force participation rate, or (d) the unemployment ratemeasures the rate of change of a variable? Explain your answer. Three of these macroeconomic variables measure a level, only one measures the rate of change from one level to another.

3.Who gets helped by unanticipated inflation: people who owe money or people who lend money? Explain your answer. "Inflation Redistributes Wealth" in Chapter 12.

4.Distinguish carefully between monetary policy and fiscal policy, and illustrate your answer with regard to the United States. Chapters 16 and 18.

5.Define the concept of price flexibility. Do flexible prices make it easier or more difficult for an economy to avoid business cycles? Explain your answer. Contrast price flexibility with price rigidity.

6."Fractional-reserve banking enables banks to make loans that are a multiple of their reserves, and as a consequence the money supply grows." True or false? Explain your answer. "Fractional Reserve Banking, the Reserve Ratio, and the Money Multiplier" in Chapter 15.

7."100-percent-reserve banking enables banks to make loans that are one hundred times their reserves, and as a consequence the money supply grows." True or false? Explain your answer. "Fractional Reserve Banking, the Reserve Ratio, and the Money Multiplier" in Chapter 15.