1. 17-
Use shifts of the AD and AS curves to explain the cost-push inflation of the 1970s.
2. 18-
What is the mathematical term to describe the relationship between real consumption and real GDP?
3. 19-
What is the mathematical term to describe the relationship between real saving and real GDP?
4. 20-
What happens to the value of the APC as real GDP decreases?
5. 21-
What happens to the value of the APS as real GDP decreases?
6. 22-
APC + APS = MPC + MPS: TRUE OR FALSE?
7. 23-
Briefly summarize Say’s Law.
8. 24-
Briefly summarize the Classical view of how the economy works.
9. 35-
What historical event caused a change in thinking about the way the economy works?
10. 26-
Briefly summarize the Keynesian view of how the economy works.
11. 27-
What is the difference between the investment demand curve for a business and the investment schedule for an economy?
12. 28-
What is the difference between the equilibrium level of real GDP and the full-employment level of real GDP in the Keynesian model?