ECON 4000   Oct. 13, 1994

 1.    The U.S. Declaration of Independence was signed in the year ________.

2.    Name one country cut by the equator. ____________________________

Answer four (4) of the following six (6) questions:

1.    What is the nature of equilibrium in a Keynesian model?  What are the implications of this equilibrium?

2.    Describe and graph the derivation of an IS curve.  How can this framework be helpful?

3.    What determines output and full employment in the classical model?  how does saving affect this model?

4.    What is meant by the liquidity preference theory of interest?  How has it been amended in more contemporary interpretations?  What is the role of this in a Keynesian model?

5.    Why are income and price measures so difficult to measure over time?  Is there a solution to this problem?

6.    What are the two basic approaches to measuring GNP?  What are the main components of each?  What makes these two approaches equivalent?