1. Starting from long-run equilibrium, draw an aggregate demand-aggregate supply graph to illustrate the difference between a long-run and a short-run equilibrium due to an increase in aggregate demand. Once the economy is in the short-run equilibrium, explainbut it's not necessary to illustratehow long-run equilibrium will be restored.

2. Juan has been doing some research on countries in Europe and Africa. Juan has observed that European countries are wealthier and that they have a higher percentage of workers who are college educated. Therefore, Juan concludes that sending more Africans to college will increase economic growth and wealth in Africa. Discuss the validity of this conclusion.

3. Imagine you are either a Classical economist or a Keynesian economist. Argue against the other side. List their primary beliefs and offer rebuttals from the other perspective.

4.The slope of the AE curve is .80. What is the expenditure multiplier?Everything else the same, by how much does equilibrium aggregate expenditure increase if the follwoing occurs: 1.Exports increase from $1.75 trillion to $2.25 trillion.; 2.Government expenditures on goods and services decrease from $2.0 trillion to $1.8 trillion.; 3.Investment increase from $1.2 trillion to $2.3 trillion.