1. Explain what determines aggregate supply in the long run and the short run 2. Explain what determines aggregate demand 3. Explain how real GDP and the price level are determined and what causes economic growth, inflation, and cycles 4. Describe the three main schools of thought in macroeconomics today

1. Explain how expenditure plans 2. Explain how real GDP is determined when the price level is fixed 3. Explain the expenditure multiplier 4. Explain the relationship between aggregate expenditure and aggregate demand Y= C+I+G+X-M Chapter

1. Describe the federal budget process, recent history, outlays, revenues, deficits, and debt 2. Explain the supply-side effects of fiscal policy 3. Explain how fiscal stimulus is used to fight a recession