Is Canada in a recessionary gap or inflationary gap right now? and how could you tell?

Why do economists think the classical dichotomy holds in the long run?

How does the self-correcting mechanism act to pull the economy out of a recession?

From a Keynesian point of view, which is more likely to cause a recession: aggregate demand or aggregate supply, and why?

What is the recessionary gap and inflationary gap? Explain the following concepts in detail. Use formulas or diagrams that could complete your description.

Define the term recessionary gap and inflationary gap why do they occur

what is the impact of a contractionary policy on the U.S. economy from a new keynesian point of view? Show the impact using a graph.

Give a solution to fix a serious national recession

Extra Credit The economy of the country Keinesia is heavily dependent on imported oil. Due to a crisis in the Middle East, the oil price has sharply increased. 1. What do you expect to happen to the equilibrium output and prices? Use the AD-AS model to illustrate it. 2. You are the economic adviser to the president of Keinesia. a. Would you advise him/her to implement Fiscal Policy? b. What type of Fiscal Policy would you recommend? c. Illustrate the effect of the Fiscal Policy on the equilibrium output and prices? Use the AD- AS model in part (a) to illustrate it.

Do you think there is a predictable relationship between the business cycle and aggregate investment spending ? Why or why not?