Economics Problem
• Explain why the AD curve slopes downward.
• What is the Keynesian multiplier and how does it expand the economy at the rate of the multiple of initial expenditure amount injected into the economy? Give a numerical example as part of your answer.
• Explain briefly why actual unemployment is never zero, even when the economy is considered to be in a state of full employment.
• What were the key sources of the Great Depression of the 1930s? How did the Keynesian economy address the situation for a quick recovery? Explain very briefly.
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.