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?