1. "Trade restrictions will stop foreign imports, which will increase American employment and protect American jobs." Most economists realize this argument is wrong. Can you explain why?
2. Adam the sheep farmer sells wool to Billy the knitter for $20. Billy makes two sweaters each of whichhas a market price of $40. Colleen buys one of them, while the other remains unsold at Billy's store to be sold later. What is the GDP here?
3. You take $100you had kept in a drawer in your room and deposit it in your bank account.If the bank holds reserves of 10%and the $100remains in the banking system as reserves, by how much does the total amount of deposits in the banking system increase? By how much does the money supply increase?