Question: 1.Define Aggregate Demand and the determinants that shift it. What could be happening if AD expands Too Quickly? 2. What are the Functions of money?

1.Define Aggregate Demand and the determinants that shift it. What could be happening if AD expands Too Quickly? 2. What are the Functions of money? Define them. Define the M1 and M2.What distinguishes them from each others? What Back the US money supply? 3. Describe the fractional Reserve system (i.e. How did it start, characteristics, strengths and weaknesses)What is the money Multiplier and how does it work? 4. Describe how unemployment is measured. what is full employment? Name three types. 3. What is a brief definition of economics? Distinguish between Microeconomics and Macroeconomics. Also Between positive and normative economic statements. 6. Suppose a Producer sells 1000 units of a product at $5 per unit one year, 2000 units at $8 the next year, and 3000 units at $10 the third year. Is this evidence that the Law of demand is Violated? Explain

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