1.Discuss the Flexible accelerator theory of investment

2.Among the theories of consumption discuss the life cycle hypothesis in detail and show how it is more effective than other forms

3.Explain the components of this consumption function: C = 100 + 0.85*Yd

a Using the consumption function in , calculate C if Yd = 1400.

Using the consumption function in , calculate Yd if C = 1600.

4.Is real GDP, used exclusively, a good indicator for the living standard in a country?

5.when consumption rises substantially. What happens to GDP and to the price level. Use the graph to illustrate this phenomenon

6.Discuss the supply of real money balances

7.Explain why when the interest rate increase people want to hold their money

8. Using economic constants compute the LM curve algebraically

9.Expalin the conditions that satisfy the equilibrium of both good and money market

10.Discuss in detailed the objectives of fiscal policies