Provide detailed answers to the following question in bold.

1. What is the main belief of the Austrian School of Economic Thought?

2. What does the Austrian School of Economic Thought attempt to surmise?

3. What are the four principles that the Austrian School of Economic Thought emphasizes?

4. What main principle does the Chicago School of Economic Thought promote?

5. What are the monetarist beliefs of the Chicago School of Economic Thought?

6. What is the focus of Keynesian Economic Thought?

7. How does a Keynesian Economist stimulate demand and propose bringing an economy out of a business cycle trough?

See attached WSJ article from October 2011 on Keynesian Economics.

It is written by a conservative scholar from the Hoover Institute at Stanford

University in northern California.

Read the article and Answer below questions:

8. In class we will verify, by computation, the unemployment rate, however,

Right now you can log on to the BLS website and look up the unemployment rate in 2011.

What are the 12 monthly unemployment rates in 2011? List them.

9. According to Allan Meltzer, what is the main tool to bring about an economic recovery?

10. There are four omissions from the economic theory of a Keynesian.

Briefly describe the four omissions and what is a common reaction

of an investor in two of the four omissions?