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1. Explain at least three distinct ways in which expectations may impact the aggregate expenditures model (describe graphic shifts with words) and at least three distinct ways in which expectations may impact the AD/AS model (describe graphic shifts with words). What do these phenomena indicate concerning the intersection of psychology and macroeconomics? . . .

2. Explain how fiscal policy is supposed to work. What are some of the problems with fiscal policy? Does history indicate that fiscal policy has been an effective means by which to manage aggregate demand?

3. What are the structural problems with US domestic program known as “Social Security?” Discuss at least four possible “solutions” to the problems facing Social Security and address the likelihood, politically, that these respective “solutions” will be implemented?

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