1. Compare Keynes and the Classicals with respect to the normal state of capitalist economy, the causes of the business cycle, and macroeconomic policy.
2. Using the Classical labor market graph, explain why a minimum wage causes unemployment? Explain why Keynesians argue that a higher minimum wage will likely lead to a reduction in unemployment?
3. How does Keynes critique the loanable funds model? How are Keynes' views on saving and the rate of interest different than the Classicals?
4. What is supply-side or "trickle-down" economics? Why do Keynesians reject supply-side economics? Does the history of the marginal income tax structure in the U.S. support or challenge the idea of tickle down economics?