I.

1. How does investment affect business cycle in the country?
2. What are the costs of a business cycle? relate it to the philippine setting. How it affects the economy of the country and what are the possible consequences. explain?

II. Discuss the following topics and cite concrete examples.

1. Marginal propensity to consume and marginal propensity to save
2. aggregate demand
3. consumption function
4. saving function
5. government and equilibrium income
6. factors affecting aggregate consumption