1. Explain the flow of incomes betweenhouseholds, businesses, andgovernmentby using examples from your daily life. (5pts)

Chapter 6: Unemployment

1. How do you calculate the rate of unemployment? What are the main reasons for unemployment in the U.S.? (5pts)
2. explain how an unemployed person becomes a burden to society. Givethreeexamples.(10pts)

3. What is the current rate of unemployment in U. S.? What is the main type ofunemployment found in U.S.? (5pts)

Chapter 7:Inflation

1.Explain the redistributive mechanics of inflation by using one example each for Price effect, income effect and wealth effect. (10pts)

2. Explain Demand pull inflation and Cost push inflation with an example for each. (5pts)

3. What is current inflation rate in U.S.? Explain the main cause of inflation in U. S. Provide the source of information for your answer. (10 pts)

Chapter 8:The Business Cycle

1. ExplainClassical and Keynesian views on maintaining stability and instability in the economy.Give two examples foreach. (10pts)
2. The figure below depicts macro equilibrium. Explain the two problems with macro equilibrium shown in the figure?(10pts)

Chapter 9:Aggregate Demand

1. List and explain the components of aggregate demand. Provide an example for each component.(5pts)
2. explain howand why Aggregate Demand shifts occur.(5pts)

3.What is macro failure? How does macro failure occur?(5pts)

Chapter 10:Self Adjustment or Instability

1.Explain - what is Multiplier and how does it work? (5pts)

2.How is an inflationary GDP gap adjusted? (5pts)