• Briefly Review Demand and Supply shocks (Including graphs) • Analyze Great Depression Business Cycle
(Including graphs) • Analyze all the business cycles since WW2 including Great Recession and Covid-19
recession (Including graphs) • Analyze how Classical and Neoclassical Economists suggest fixing the
Recessionary Gap and Inflationary Gap (Including graphs) • Analyze graphically to understand the Monetary
Policy solution to fix Recessionary Gap and Inflationary Gap (Including graphs) • Compare the Monetary Policy
effectiveness to fix a Negative Demand Shock versus Negative Supply shock (Including graphs) • Analyze
what is Disinflation and its consequences for Federal Funds Rate. • Analyze Keynesian notion about the role of
Government • Practice with several numerical questions o Relationship between MPC (b) and the spending
multiplier (1/1-b) o Government spending multiplier, Investment spending multiplier, Export Spending multiplier
= 1/1-b o Calculate changes in Real GDP (Income) due to any change in the AD component. (SHIFT IN AD
REFERS TO ∆ Y) o Analyze the effect of a decline in any component of spending on Real GDP • Understand
the tools of Fiscal Policy • Differentiate between Government purchase and Government expenditure • Analyze
graphically to understand the Fiscal Policy solution to fix Recessionary Gap and Inflationary Gap (Including
graphs) • Understand who conducts the Fiscal Policy • Differentiate between Federal fiscal year and CA fiscal
year • Differentiate between Advantages and Disadvantages of Deficit o Understand as to why is it difficult to
balance budget (avoid a deficit) during Recession o Analyze the implications of Government efforts to balance
a budget during a recession (E.g. in Mid 1930’s) o Analyze the relationship between Budget deficit and
Crowding out. • A total of at least 3 articles need to be analyzed for both topics: Deficit and Debt. • At least 1
article for EACH FORUM POST must be from the list given below. • Focus on Deficit topic articles in the Deficit
forum and focus on Debt topic articles in the Debt forum • Analysis should be "Paraphrased"
Sample Solution