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1. Draw the circular flow complete with all leakages and injections. Explain how the leakages get injected back into the economy.

2. Says law says?  Do you agree or disagree with Jean? (Jean Baptiste Say) EXPLAIN. (hint...loanable funds market)

3. How are the production function graph and labor supply graph related in the classical model? Draw them together - either side by side or one over the other and EXPLAIN what the main points of this model tell us.

4. State two ways the labor supply curve shifts to the right. Explain how each way impacts the output, productivity, and standard of living in the economy? Include the formulas for productivity and standard of living in your answer.

5. Explain what an increase in capital and/or technology does to wages, equilibrium full employment, productivity, and standard of living.  Show this shift in a production function graph and labor supply graph drawn together one above the other. (page 239 and 243 will be helpful)

6. When more people enter the workforce productivity goes ______(up or down.) Is this a good thing or not? Explain. (hint... population

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