Gallaway
ECO 385
Spring 200
5

Homework #3

All homework should have a cover page indicating the student's name, class, and row number. All homework assignments should be typed.  Math  and graphs can be handwritten if done very neatly. You may work in groups.  See the syllabus for relevant guidelines.

  1. If the fed can control the monetary base, what are the factors that limit its control over the money supply?
  2. Why is an upward sloping SRAS important for explaining business cycles? Compare and contrast the Keynesian, Friedman, and Lucas explanation of an upward-sloping LRAS.