1)What prediction is shared by the neutrality of money and the natural rate hypothesis (NRH)?

2)State whether the following statements are true or false. If false, also write a corrected statement.

a. Macroeconomics is about the activities of government agencies.

b. Economic growth always leads to improvements in living standards.

c. The three aspects to consider in thinking about sustainability are financial, monetary, and ecological.

d. Over a billion people live in absolute poverty, defined as $1.25 or less per day.

e. Poor countries have had little problem paying back economic development loans.

3)An initiative on Arizona's 2006 ballot would have handed out a $1 million lottery prize every election: The only way to enter the lottery would be to vote in a primary or general election.

How would a lottery like this influence voter ignorance?

1)The neutrality of money states that the change in money supply will only impact the nominal variable that is; there will be no change in the real variables. The theory is based on the idea that the money is neutral that is, printing money cannot change the economy's position or the economy's equilibrium, though it can drive the demand and increase the prices.

The natural rate hypothesis was posited by economist Milton Friedman. The theory states that there is always some amount of unemployment that exists in the free labor market. The unemployment is unavoidable in the labor market. The unemployment takes in to account mainly the frictional and structural unemployment rates.

2)(a) FALSE

Macroeconomics is concerned with the financial and economic policies of the government agencies.

(b) TRUE

The more stable the economy of a country will be, the more progress will be made in the living standard.

(c) FALSE

The three main aspects of sustainibility are social, environmental and economic.

(d) FALSE

The World Bank has raised the poverty line from $1.25 to $1.90.

(e) TRUE

Various new initiatives are taken to help the poor countries to pay back economic development loans.

3)Here, Arizona ballot handed $1 million lottery prize during every election which could increase the advantage of voting but doing so will not change anything like benefits or cost of being updated regarding the politics. It is not a legal activity to pay for voting.