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.