ECON 4000 October 24, 2000
1. CSU-Stanislaus first opened in ________________.
2. The Italian monetary unit is the ________________.
3. The capital of Australia is _____________________.
Answer four (4) of the following six (6) questions.
1. What is Say's Law? What part does it play in the classical model? What is its significance? What do we mean when we say it has to be true?
2. Why is it often argues that the PCI overstates the rate of inflation?
3. What is an LM Curve? What does it show? How can it be used? Show how it can be derived.
4. In the classical model what are the assumptions of the classical labor market? What will cause changes in this market and why?
5. Why can it be said that the IS and LM Curves are equally important? What is the implication of this policy?
6. Discuss and evaluate the following statements:
What economic framework would each fit with?