(Answered):Please Answer Those Review Questions . . . .

Question Description

Please answer those Review Questions

1. Why did the “Great Stagflation” present a huge problem to the Keynesian Theory? Why could this theory not explain the phenomenon of stagflation?

2. Summarize Friedman’s critique of managing aggregate demand to maintain full employment.

3. How did Friedman’s theory provide an explanation for the phenomenon of stagflation?

4. State the key proposition of Say’s Law. What insight does it contain regarding the nature of human cooperation under a system of division of labor?

5. Using the insight provided by Say’s Law, explain the consequences of a significant distortion of the structure of production relative to consumer