This exercise will allow students to explore the basic beliefs of the major approaches to economic theory. By creating their own multiple choice questions, students will learn to differentiate among the beliefs of economists regarding government intervention, equilibrium, and monetary and fiscal policies. After each group presents its question, be sure to compare group questions and answers for similarities and differences among the three approaches.

Divide the class into groups of four. Each group is to write one correct and four incorrect answers to the following multiple-choice questions. First each person should write one correct and one incorrect answer on his or her own. Then the group should meet and discuss each answer, making improvements where necessary in order to develop the five final responses to the question. The groups will take turns calling on other groups to pick the correct answer form their alternatives.

Monetarist economists believe that:

Keynesian economists believe that:

New classical economists believe that: