1. "In the Blanchard/New Consensus model, the PS line shifts due to changes in costs and productivity; in the alternative model, the PS line can shift due to changes in costs and productivity, too, but also by changes in demand." Explain.

2. "In the Blanchard/New Consensus model, labor costs change when W changes; in the alternative model, labor costs are considered as a total "bill" composed of W, jobs, and hours, any of which may be changed."

3. "In the real world, the evidence is that firms reduce jobs and hours when the economy turns down much more than they try to force wages to fall." Explain.

4. "In the Blanchard/New Consensus model, there is self-adjustment through changes in W. In the alternative model, a change in W might produce similar outcomes as the Blanchard/New Consensus model, but also might not." Explain.