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1.&nbsp What factors contribute to aggregate demand? Give examp

    1.  What factors contribute to aggregate demand? Give examples of why long run aggregate supply can change?2.Fiscal policies are the actions of Congress on spending and taxing. (Monetary policy is the action taken by the Federal Reserve to changethe money supply.)Although the unemployment rate has been declining, the effects of theUS recession on employment continue to linger.  Some economists thoughare concerned about inflation heating up.1.pdf3.pdf2.pdf4.pdfTakeeither the classical or Keynesian point of view on whether fiscalpolicy should provide more stimulus or should the Federal governmentspending continue to contract. (AS ALWAYS IN THIS CLASS, THIS POSITIONNEED NOT BE YOUR ACTUAL OPINION.)  Support your point of view usingprinciples of Classical or Keynesian economics, as described by Mayer inChapter 16 of ‘Everything Economics’.3. IsPaul Krugman’s views consistent with Classical or Keynesian economics? What might critics, like the NEOK video, say of Krugman’s policyprescription?

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