Answer the following questions about Keynesian vs. Classical view of economics
A. Marginal propensity to consume (MPC) is the slope of the Keynesian AEcurve. Using an equation and words, describe the relationship between MPCand the Keynesian spending multiplier.
B. Explain why the events of the Great Depression were inconsistent with the classical view of the economy.
C. Use the AD/AS model to compare the effects of expansionary fiscal policy at two points on the AS curve: the Keynesian section and full employment. Use graphs, and label everything completely.