What is a business cycle? What are the 4 stages of the business cycle? 13. What is an inflationary gap? What is a deflationary gap? Graph both situations. 18. What is meant by Gross Domestic Product? What are the components of GDP? 19. Current dollar GDP is $2,000 billion, the current deflator, based on 1992=100, is 200 . What is the constant dollar GDP? 20. Explain the role of savings in the economy. What happens if savings does not equal investment, according to Keynes? 21. What determines the level of investment done in the economy? Explain the relationship between interest rates paid and the level of investment. Illustrate with a graph. 22. What is meant by the multiplier effect? Explain how it works. 23. If a producer decides to increase investment by $20 billion and the MPC is .7, what will the impact be on gross domestic product? 26. Several explanations have been put forth to explain why the Great Depression occurred. Explain the views put forth by Keynes and Friedman. With which do you agree and why? 25. What are leakages? What are injections? What affect do they have on the economy? 26. What is meant by equilibrium income? How is it determined? Illustrate with a graph. 27. What is the Paradox of Thrift? 21. What steps must be taken to purchase stock? Is anyone allowed on the floor of the exchange? 29. What is meant by trading on the margin? Why was