ECON 364
Homework Assignment One – (24 pts.)

DUE THURSDAY, JAN. 20 at the beginning of class.

READ:  Copy and paste this page into a word document and then type your answers or type them on another sheet of paper.   If you turn in another sheet of paper it MUST BE STAPLED to this sheet. 

Name:

1.  What is the difference between normative and positive economics?  Give an example of one normative "macroeconomic" goal that most economists agree upon and explain why you think most agree with it. (6 pts.)

2.  Explain one "controversy" in macroeconomics.  That is, explain one reason or theory about which economists don't agree and why you think the disagreement exists.  (6 pts.)

3.  Define Gross Domestic Product  (2 pts.) and

a.  explain how the government determines it using the expenditures approach (be sure to explain how this expenditure approach relates to "productivity", (6 pts.)

b.  define per capital GDP, (2 pts.)

c.  explain the difference between real and nominal GDP (2 pts.).

    Also: