answer any 5 questions

1. What is Say’s Law? How does it differ from Keynes view of the Classical theory?

2. Briefly explain any two factors that would shift the Aggregate Supply curve.

3. Briefly explain any two factors that would shift the Aggregate Demand curve.

4. What is Asymmetric Information? Differentiate between Adverse Selection and Moral Hazard.

5. What is Agency Problem? How does it relate to the Principal-Agent Problem?

6. What is Liquidity Trap? How does it differ from the Credit Crunch?

7. Briefly explain the three instruments of monetary policy utilized by the Federal Reserve Bank (FED).

8. What is Quantitative Easing? Compare expansionary and tight Open Market Operations.

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