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A)1

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A)1.Every economic system must ask and answer three fundamental economic questions:a)what to produce?b)For whom to produce?c)How to produce?Discuss how a free market(non centralized)economy mayanswers these questions.2. We heard in the news that GDP is higher this year than it has been in past years.This means that our"wellbeing" has improved this yearcompared to last year.Discuss3.Discussways in which the CPI might affect your life.B)1.Projected government deficit in2019compared to2018has increased from$0.89trillion to$0.99.Discuss how this maybe related to the concept of"crowding out".2.What is"natural"about natural unemployment,discuss.C) "Neither monetary policy nor fiscal policy alone can be effective in formulating sound economic policies for recession." Do you agree or disagree? Share your thoughts. Tax cut is a debatable topic. Does it help or hurt the relatively poorer segment of the population? You can take either side but make sure to substantiate your thought with references.

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