Please answer the following practice questions clearly and comprehensively.

1. Explain why economists focus on REAL GDP as opposed to NOMINAL GDP in tracking the business cycle?

2. What are the FOUR different types of unemployment? Why should you avoid being structurally unemployed?

3. What is the MOST used TOOL by the FED in manipulating interest rates and the money supply?

4. What type of Fiscal Policy is the current Obama administration implementing? Be specific