1. Imagine you are either a Classical economist or a Keynesian economist. Argue against the other side. List their primary beliefs and offer rebuttals fromthe otherperspective.

2.The slope of the AE curve is .80. What is the expenditure multiplier?Everything elsethesame, by how much does equilibrium aggregate expenditure increase if thefollowingoccurs:

• a. Exports increase from $1.75 trillion to $2.25 trillion.

• b. Governmentexpenditureson goods and servicesdecreasefrom $2.0 trillion to $1.8 trillion.

• c. Investment increase from $1.2 trillion to $2.3 trillion.