Consider an economy in recession. Suppose that the government chooses to do nothing to try to get the economy out of the recession. The recession will still end as firms adjust their expectations about the future price level. 

Economists refer to fluctuations in output as the “business cycle” because movements in output are regular and predictable.

One of the key facts about recessions is that real GDP and unemployment tend to move in opposite directions. 

Consider the following aggregate demand and aggregate supply picture. Suppose the economy starts at point C. An increase in the money supply would move the economy to which point in the short-run? 

One of the most interesting facts about recessions in the US economy is that they almost always last the same amount of time. 

Consider the following picture of the money market (this is the model of liquidity preference).  There is excess money demand at an interest rate of 

In the discussion of why the Aggregate Demand, we discussed three reasons the AD curve slopes downward: the wealth effect, the interest rate effect, and the net export effect. Which of the following describes the wealth effect? 

Consider the economy in recession at point B in the following picture.  Which one of the following did we discuss as something the government could do to try to end the recession? 

2. Define the Perceptual Model and provide the theories associated if any. 

What was a major focus of the Second Wave feminist movement?