ECON 4000 October 15, 1996

 1.   The governor of California is___________________________.

2.   Plants are green because they have__________________________.

Answer four (4) of the following six questions:

1.   What are the critical assumptions of the classical model?  Critically comment on each.

2.   What are the critical assumptions and components of the Keynesian model.  How do these

      determine one's evaluation of the economy?

3.   Why is measuring price changes important?  What makes this difficult to do?  How could

      our measures be improved?

4.   What are the functions of money?  Who controls the money supply?  How is money defined and measured?

5.   How do the IS and LM curves contribute to understanding equilibrium in the economy?  How do they add to understanding and evaluating economic policy?

6.   Describe and explain what is shown by the derivation of ONE of the following:  IS curve or an LM curve.