8. Liquidity trap, causes, effects. Relationship between I, Sp and Sg. 9. Causes of recent tax cuts and expected effects. What would make them more effective? 10. Comparison of classical/neoclassical theory with Keynesian. How do they differ? How do changes in in C, I, G, T, M affect the Z and Y? 11. What are the main policy conclusions of the Classical economic theory? 12. What is loanable funds theory? How does it work? 13. According to Keynesian theory, why do economies not quickly bounce back from collapses? 14. According to Keynesian theory, what are the effects of uncertainty on I and Z? 15. What are the effects/costs/benefits of balanced budget requirements? 16. ALL required readings in the syllabus.