Macroeconomics  © John Petroff Source: PEOI

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Assignments for Macroeconomics Chapter 7

Assignment #1:
Outline the basic propositions of the classical theory. What
are their views about individual markets?

Assignment #2:
Outline the essence of Keynesian critique of the classical
theory.

Assignment #3:
 Compare the views offered in the classical theory and the
Keynesian model on what should be done about the business cycle.

Assignment #4:
Draw the 3 ranges of aggregate supply in the introductory graph.
Explain each.

Assignment #5:
In the introductory graph, discuss what would happen if
the aggregate demand is shifted in the Keynesian range,
then if it is shifted in the classical range.

Assignment #6:
Show in the introductory graph how policies dealing with
unemployment would work. Explain.

Assignment #7:
Show in the introductory graph how policies intended to deal with
inflation are supposed to work. Explain.

Assignment #8:
In the introductory graph, show and explain what would be
accomplished by shifting aggregate supply.

Submit assignment

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