Fiscal policy and the short-run aggregate supply curve
1. Explain how fiscal policy may possibly affect the short-run aggregate supply curve.
2. How does classical economics explain its confidence in the ability of natural forces to return the economy to its potential level of real GDP?
3. What were the reasons for establishing the Federal Reserve System as 12 Reserve banks rather than a single central bank in Washington?
4. What is meant by the "independence" of the Fed? Is the Federal Reserve independent? Explain why or why not.