1 MACRO QUIZ CHAPTERS 9,10,&11 Write a short essay of about one or two pages explaining the benefits and problems of economic growth for a nation. In the essay explain why government policies are probably more important than cultural things such as the work ethic and what you think are the most important reasons why some nations grow and others do not. 2. Write a short essay of about one or two pages in reference to the formula Y=C+I+G+(X-IM). Explain how each of the components in the formula can affect the loanable funds market and why government deficit spending can seriously affect the Investment component. 3. The amount of savings that is available determines the amount of investment. A nation's investment is based on long term plans and unplanned investment (inventories). By definition "unplanned" means there is lack of control by the business since it is determined by buying habits of consumers. Write a short essay of about one or two pages explaining how the decreasing or increasing of inventories affects the economy and what happens in the economy when there is equilibrium regarding inventories..