1) Sketch the aggregate demand and aggregate supply functions for both the Keynesian and Classical Schools. Explain the assumptions inherent in each of the depictions, (i.e. the slope of the aggregate function is sloping in the school because).
2) Depict an equilibrium for AD and AS for the Keynesian School. What are the relevant assumptions concerning prices and the slope of the AD function.
3) Depict the equilibrium of AD and AS for the Classical School. What are the relevant assumptions concerning prices and output.