Macro-economic Question 1: Briefly explain: - GDP; inflation; unemployment; balance of payments; term of business cycle - discussion of the circular flow of income, highlighting the various relationships between firms, households, government, and international economies. - difference between leakages and injections. - Explain the determinants of aggregate demand and whether or not aggregate supply will be perfectly inelastic. - Explain how changes in aggregate demand and supply can explain the business cycle. - Exploiting various income elasticities throughout the business cycle