What factors (determinants) cause the ad curve to shift

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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?

Reference no: EM13198973

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