Explain what is meant, in economic terms, for each of the six macroeconomic principles stated below i.e. what does 'trade can make everybody better off,' really mean in terms of economic growth, stable inflation, full employment and the balance of payments.

Explain with examples how each of the six macroeconomic principles can be achieved i.e. how does trade benefit economic growth, stable inflation, full employment and the balance of payments.

Explain through the use of AS / AD diagrams supported with a discussion as to why each of the six macroeconomic principles are important to the understanding of the management of the economy i.e. why does 'trade really make everybody better off,' in terms of economic growth, stable inflation, full employment and the balance of payments through the use of real world examples or case studies and a theoretical discussion. Note: Unless each of the six principles of macroeconomics are carefully managed by policy makers, there can be negative effects. You are expected to understand each topic to the extent where you can challenge each statement. This can be done theoretically and / or with the use of examples / case studies that you know from your previous assignments in this course. This represents the critical thinking component of the assignment and is necessary to achieve an A Grade for the assignment.

1. Trade can make everyone better off.

2. Markets are usually a good way to organize economic activity.

3. Governments can sometimes improve market outcomes.

4. A country's standard of living depends on its ability to produce goods and services.

5. Prices rise when a government prints too much money.

6. Society faces a short run trade-off between inflation and unemployment.