Q 1. Keynes states in the Preface of his book The General Theory that the comprehension of his macroeconomic theory requires the reader to escape from Classical economic theory. In what fundamental ways does Keynesian economics differ from Classical economics? In your essay, address the following issues: Say’s Law, the investment multiplier, and Keynes’s ideas on states of equilibrium that are at less than full employment. 2. How is Friedman’s restatement of the quantity theory of money like Keynes’s monetary theory and how is it different? (ANSWER ONE OF THE FOLLOWING TWO QUESTIONS) 3. During the whole of its history, the “Austrian” school of economics has been a consistent and vehement opponent of socialism. These criticisms take on political and economic dimensions. According to the Austrian school, what are the specific economic problems related to socialism? Has history proven the Austrian school to be correct about the economics of socialism? 4. Explain Chamberlin’s view of the role of advertising in monopolistic competition. Use the appropriate graphical models to illustrate Chamberlin’s point of view.