Thinking back to the business cycle discussion, how would Keynesian economists explain the
performance of the economy during the last few years? What has happened to aggregate demand? What
evidence can you present to support this position? • Next, how would neoclassical economists explain the
performance of the economy during the last few years? What has happened to aggregate supply? What
evidence can you present to support this position? • Evaluate the evidence and decide which
interpretation makes the most sense to you. Explain your reasoning.