• Thinking back to the business cycle discussion, how would Keynesian economists explain the performance of the economy duringthe last few years? What has happened to aggregate demand? What evidence can you present to support this position?
• Next, how would neoclassical economists explain the performance of the economy duringthe last few years?What has happened to aggregate supply? What evidence can you present to support this position?
• Evaluate the evidence and decide which interpretation makes the most sense to you.Explain your reasoning.