7. What are short-run fluctuations in the Macro-economy? 8. What makes up AD? What makes AD and SRAS and LRAS shift? 9. What factors make AD and AS shift? 10.What is the difference between Keynes and the Classical economists? 11.What are sticky wages according to Keynes and how do they affect the SR? 12.What is an adverse supply shock?-Refer to the stagflation of the 70's. What is supply-side economics? 13.Why is AD downward -sloping and SRAS upward sloping and the LRAS vertical? 14.What is potential output or the natural rate of output? 15.How does fiscal policy and monetary policy affect the AD curve? 16.What is the MPC and its relation to the size of the multiplier? 17.By how much AD shifts given the multiplier effect. 18. What does this formula mean to you: A real GDP = 4 initial spending x 1/1-MPC?-Interpret 19.What is the TP-TE Simple Keynesian Model and how doers it depict equilibrium as well as overproduction and underproduction? What are its components