Macro economics

Define any 10 terms. Give examples where pertinent.
Macro Economics Opportunity cost Model / Theory Micro Economics Real capital Fiscal Deficit GDP Debt Net exports 1. a) What is Supply ? What is Demand ? b) Develop a model of a market, utilizing supply and demand. What are the dominant variables or parameters ? c) What is a shortage ? What is a surplus ? DEMONSTRATE d) Via the model, explain the dynamic changes that can happen in a market. Give examples. e) Relate the Micro economic model of supply and demand to the Macro economic model of Aggregate Demand and Aggregate Supply. 3. a) What is Aggregate Demand ? b) Develop a model showing the importance and effects of Aggregate Demand on the overall economy. c) What is Fiscal Policy ? What are the goals of Fiscal Policy ? What are the tools of Fiscal Policy ? d) Explain the how expansionary Fiscal Policy would be implemented. e) What is the presumed result of the use of Fiscal Policy ? f) What are the criticisms regarding the use of Fiscal Policy ?




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