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Unformatted text preview: into play when price is either above or below its equilibrium level? 7. Using the AD/AS model, (i) explain what could shift the aggregate demand outward and (ii) explain how demand-pull inflation can occur. 8. Using the capital deepening model, explain how long-run economic growth occurs. 9. What is the accelerator and what role does it play in explaining business cycles? 10. Explain the difference between expectations and speculation and using that difference, show how economic bubbles may occur. 11. Define and explain: age of enlightenment, absolute income hypothesis, relative income hypothesis, structural unemployment, underemployment. 12. List the component parts of national income. Using the expenditure approach, list the component parts of GDP....
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This note was uploaded on 09/30/2010 for the course ECON 33328 taught by Professor Petry during the Fall '10 term at University of Illinois at Urbana–Champaign.
- Fall '10