Generally, when the economy is in a recession, what happens to
inflation? How does unemployment change in a recession? Explain
your answers.
Generally, when the economy is expanding, what happens to
unemployment and inflation? Explain.
List and explain five factors, other than income, which can
change the amount of overall consumption spending for an
economy.
What did Keynes mean with the phrase “animal spirits”? How do
animal spirits affect investment spending for an economy?