Address these questions and include the needed diagrams and graphs

1. Define the law of demand and draw a Demand Curve labeling the axes correctly and curve correctly.

2. List the "Ceteris Paribus" variables that affect demand and illustrate a shift in a Demand Curve. Now discuss how a change in each of these varialbes would lead to the shift you have illustrated in your drawing.

3. Define the law of supply and draw a Supply Curve labeling all the axes correctly.

4. List the "Ceteris Paribus" variables that affect supply and illustrate a shift in a Supply Curve. Now discuss how a change in each of these varialbes would lead to the shift you have illustrated in your drawing.

5. Draw a supply and demand curve on the same graph. Label all axes and curves appropriately. Label the equilibrium point, the equilibrium quantity, and the equilibrium price.

6. Explain what market equilibrium is and why there is a tendency toward it. (In other words, if the price of something is higher or lower than the equilibrium price, what forces (i.e., human behavior) push the price and quantity to equilibrium.)

7. Graphs

a. With the use of a graph illustrate what a shortage (excess demand) is.

b. With the use of a graph illustrate what a surplus (excess supply) is.

8. Explain how surpluses/shortages might become permanent. (In other words, explain what forces might keep the market from establishing an equilibrium.)

9. What is the CPI?

10. How is it constructed, and how does it measure inflation?

11. Why is it so important to so many people in the U.S. today?

12. What are some of it weaknesses?

13. Explain what is meant by full employment in macroeconomics, and explain why the unemployment rate might well be greater than zero at full employment.

14. Draw the circular flow of economic activity, labeling all economic actors, markets, and money flows.

15. Point out on the graph (and explain in terms or the equations that define them) where one might build a dam or dams to measure GDP by:

a. the expenditure approach

b. and also by the income approach