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1. In the model laid out in this chapter, who receives? Who spends? Who saves?
2. What conditions comprise equilibrium in a macroeconomy?
3. Saving described as a "leakage" from the circular flow. How is it a leakage?
4. Describe how the problem of leakages in solved in the classic model.
5. List five factor, aside from the level of income, that can affect the level of consumption in a macroeconomy.
6. What determines aggregate in the Keynesian model? Draw and labor a graph.
7. Draw a "Keynesian cross" diagram, carefully labeling the curves and the equilibrium point.
8. Describe how adjustment to equilibrium occur in the Keynesian model.
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In certain classes, you will be asked to write an annotated bibliography, which sounds quite intimidating, but is simply a brief summary of something you have read or consulted during the course of your research on a given subject.
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Use the following information to answer all of the questions that follow. (Enter one decimal place - that is, if your answer is .2, enter .2, not .20)
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After so many years of craft unionism, what led to the rise of industrial unionism in the United States?
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