1. In what ways is macroeconomic equilibrium similar to individual demand and supply equilibrium?

2. What real world items complicate the basic spending multiplier? Why do we choose to ignore these?

3. How is the aggregate demand curve related to the aggregate expenditures function?

4. How do consumption and investment spending affect aggregate expenditures and output over the business cycle? Which is more responsible for volatility?

5. How does international trade affect aggregate demand, output, and employment?

6. Choose a current economic policy (i.e., stimulus packages or health care revisions) and explain its impact on aggregate expenditures and equilibrium.

7. Why do we choose to study the Keynesian model, even though it is a fixed-price model?