Fiscal Policy 1. The Car Analogy The economy is like a car… You can drive 120mph but it is not sustainable. (Extremely Low unemployment) Driving 20mph.
12. GDP is: A)the monetary value of all goods and services (final, intermediate, and non-market) produced in a given year. B)total resource income less.
Unit 3-6: Aggregate Demand and Supply and Fiscal Policy 1.
1. 1.Draw an Inflationary Gap with your fingers. 2.Draw a Recessionary Gap with your fingers. 3.Explain the difference between the Classical and Keynesian.
Fiscal Policy. The Car Analogy The economy is like a car… You can drive 120mph but it is not sustainable. (Extremely Low unemployment) Driving 20mph is.
