1. What factors (determinants) cause the AD curve to shift?
2. What factor(determinants) cause th AS curve to shift?
3. Briefy expain and show graphically how fascil policy works to close a recessionary and an inflationary gap.
4. Explain and show graphically how the self-correcting(self-djusting) mechanism works in a recessionary and in an infationary gap. Does the ecoomy have a self-correcting mechanism? Explain
5. Explain and show graphically how "supply-side" economic is supposed to work to close a recessionary gap. What are the short-falls of supply-side stategies?
6.Explain the difference between the Keynesian and classical views. When is fiscal policy efective. What did Keynes mean by " In the long run we are all dead?