Introduction 1. Explain the typical stages in a business cycle. 2. What is the difference between GNP and GDP? Why is GNP generally smaller in Ireland than GDP? Is this a good thing? Topic 1 1. What are leakages and injections? 2. Please draw the circular flow model of closed economy if there were households, firms. 3. Please draw the circular flow model of open economy if there were households, firms and government. 4. What are the objectives of government macroeconomic policy? Please outline the difficulties in achieving all objectives simultaneously. Topic 2 1. List and briefly explain the approaches to measuring GDP. 2. For Ireland, does GNP or GDP provide a more accurate measure of economic activity? Why? 3. Is GDP a good measure of economic welfare “happiness” in a country? Suggest better measures of welfare.