1. Determine whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve, a shift in neither curve, or a shift in both curves. If a shift is caused, indicate which curve shifts, and in which direction it shifts. What happens to aggregate output and the price level in each case?
There is no minimum word requirement for responses. Please label each section of your response with the appropriate number (1, 2, 3, 4).
2. Compare the classical economic theory that was used prior to the Great Depression to the Keynesian theory used after the Great Depression.