What is Say's Law? Why does money pose a problem for Say's Law? How do the Classicals preserve Say's Law given the presence of money? Use the loanable funds model to explain why an increase in saving will be offset by an increase in investment spending.

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. 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?