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1. Explain the New Classical extension of Friedman's theory.

2. Using the insight provided by Say's Law, explain the consequences of a significant distortion of the structure of production relative to consumer preferences. How does the initial crisis or cluster of errors snowball into a recession?

3. Explain the concept of the "order of goods" as used by the Austrian Economists. How does this relate to the concept of "stages of production"?

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