Problem 1) Explain what a recession is.
Problem 2) Explain what an expansion is.
Problem 3) Explain what Disposable Income is.
Problem 4) Explain what an endogenous variable is.
Problem 5) Explain what an exogenous variable is.
Problem 6) Explain what an "autonomous" component is
Problem 7) Explain why I= S is an equilibrium in the goods market.
Problem 8) Explain the paradox of the Thrift.
Problem 9) An increase in Investment will increase the multiplier. TRUE OR FALSE?
Problem 10) Consider the IS/LM model. After a monetary expansion, list three variables that have changed.
Problem 11) Discuss the uncontroversial final effect of a contractionary monetary policy and an expansionary fiscal policy.
Problem 12) If IS were vertical and G increased, the crowding out were zero. TRUE OF FALSE? Explain your answer.