Q1)In addition to capital accumulation and technological progress, what are some of the other possible explanations for recent output growth in China?

Q2) Will the CPI and GDP deflator always move together?Explain.

Q3) First, explain why the money demand curve is downward sloping.Second, explain what factor(s) will cause shifts in the money demand curve.

Q4) Based on your understanding of the IS-LM model, graphically illustrate and explain what effect a reduction in consumer confidence will have on output, the interest rate, and investment

Q5) Graphically illustrate (using the WS and PS relations) and explain the effects of an increase in the markup on the equilibrium real wage, the natural rate of unemployment, the natural level of employment, and the natural level of output.

Q6) Based on your understanding of the aggregate supply and aggregate demand model and the IS-LM model, graphically illustrate and explain what effect a tax increase will have on the economy.In your graphs, clearly illustrate the short-run and medium-run equilibrium.

Q7) Based on your understanding of the Phillips curve, is it possible for the unemployment rate to increase while inflation increases?Explain.