problem 1) Describe the difference between short-run and long-run aggregate supply curves and their importance for economic policy.

problem 2) Differentiate between demand-pull and cost-push inflation using aggregate demand-aggregate supply model.

problem 3) Describe and construct a traditional short-run Phillips Curve using aggregate demand-aggregate supply model.

problem 4) Distinguish between short-run and long-run Phillips Curves.

problem 5) describe the supply side shocks to the U.S. economy in the 1970s and 1980s.

problem 6) Use aggregate demand aggregate supply graph to demonstrate how supply side shocks led to stagflation in 1970s and 1980s.

problem 7) Describe why demand management policies cannot eliminate stagflation.

problem 8) Differentiate between demand pull and cost push inflation using aggregate demand aggregate supply model.

problem 9) Describe two possible effects of taxation on aggregate supply.

problem 10) Describe the Laffer Curve concept and name three criticisms of this theory.