The Assignment contains 4 short answer questions but only 3 are required. Students must answer question 4 and then choose between questions 1,2 and 3. Your answers should be typed, single spaced and limited to 1-paragraph for each question part. 1) Why did Say believe that gluts and slumps in the economic system were impossible? According to Ricardo what is the functional distribution of income? How does Ricardo’s Labor theory of trade improve on Smith’s theory of trade? Note that these are short answer questions so your response should be limited to 1 paragraph per questions. 2) Describe Malthus’s theory of the population and outline its main implication. What is the “subsistence wage” and how according to Malthus is it maintained? According to Malthus why does “moral restraint” benefit workers? Note that these are short answer question so your responses should be limited to 1 paragraph per question. 3) Briefly explain: a) The transformation problem b) The means through which capitalist can accumulate capital according to Marx. c) The idea and importance of competition in Marx Note that these are short answer questions so your responses should be limited to 1 paragraph per part. 4) According to Keynes, why during an economic downturn is expansionary fiscal policy preferred to expansionary Monetary Policy? What is the Principle of Effective Demand and how does it differ from Say’s Law? Note that these are short answer questions so your response should be limited to 1 paragraph per question.