1-What is an inflationary gap? What causes it? What is the Keynesian policy prescription for addressing
2-What is the expenditure muiplier? What is its significance for Keynesian economics?
3-Explain the term Potential GDP Briefly discuss potential GDP in the neoclassical model, including how the curve is shown, what it determines, and how it operates over time.
4-Is the neoclassical long-run aggregate supply curve consistent with the Phillips curve?
5-What is the effect on the Aggregate Demand Curve of an increase in the price level? Explain your answer.