Question 1: Four Key Markets and the Circular Flow of Income: Source--Gwartney Chapter 9.2 Exhibit 1 (300 word minimum)
Explain Chapter 9 Exhibit 1. Your objective is to convince me that you understand Exhibit 1.
Question 2: Fundamentals of the Aggregate Demand-Aggregate Supply model.: Source--Gwartney Sections 9-3, 9-4, 9-5 (200 word minimum + REQUIRED Graph. Graph must be drawn using a writing instrument {pen or pencil}.
A. Draw a graph of the Aggregate Demand-Aggregate Supply model in long-term Equilibrium.
B. Explain why the AD curve is downward sloping.
C. Explain why the SRAS curve is positively sloped.
D. Explain why the LRAS curve is vertical.