1) What are the four different views of the causes of macroeconomic instability in the economy?

2) Compare and contrast the new classical and main stream view of self correction in the economy.

3)Compare and contrast the views of new classical economists and mainstream economists on the issue of policy rules versus the use of discretionary monetary and fiscal policy.

4) What are "coordination failures" and why are they important for interpreting the macro economy?

5) Explain the new classical view of self correction in the economy. What are the strengths and weaknesses of this view?

6) What rationale does rational expectations theory provide for the ineffectiveness of discretionary policies?