Identify and briefly describe the main ideas Keynesian economics is based on.
Compare and contrast the income-expenditure graph with the AD/AS graph and the Phillips curve graph. Be sure to include the assumptions that are made in each model.
Discuss the multiplier effect including a description of what it describes in macroeconomic terms, how it is determined, and an illustration of how it is defined.
Identify and discuss 2 reasons why prices(not wages) may be inflexible in the short run.
Explain why an assumption of rational expectations leads to an economy that adjusts rapidly to potential output in the AD/AS model.