1. Travel on a train between Paris and Madrid and the view from the window changes- ?uctuating between green land and a heavy concentration of economic activity. What explains this bunching of activity over space? Could similar factors explain the bunching of activity over time (the business cycle)? If so, how should governments respond to the business cycle?
2. What role do you think consumer and ?rm psychology has in driving the business cycle through ?uctuations in demand?
3. What are the impulses and propagation mechanisms of Real Business Cycle theory and Keynesian models?