Review questions below, please provide answers (max 500 words each).

1). What is Macroeconomics and how does it differ from Microeconomics?

2). Macroeconomics is very important in any economy. List four issues dealt with in macroeconomics and explain each one. Measuring the Economy:

1). What does GDP attempt to measure?

2). Briefly differentiate between nominal and real GDP.

3). Why is real GDP a more accurate measure of economic growth compared to nominal GDP?

4). What are two weaknesses of GDP?

5). Scarcity means that the nation must do what?

PART 2: Scenario 1: Suppose that, as part of an international trade agreement, the Canadian government reduces the tariff on imported coffee. Will this affect the supply or the demand for coffee? Why? Which determinant of demand or supply is being affected? How will this change the equilibrium price and quantity of coffee? Explain your reasoning.

Assignment Guidelines: Please submit your written component, in one document, to the Dropbox for Assignment 1. Note: there will be a penalty of 10% per day for late assignments Marking Rubric: For assignment one, you will be marked on the following: /20 Grammar and spell accuracy Clear description and explanation of each question Valid conclusions are presented Logical structure