1. What are the major factors that determine investment, and what impact does each have on aggregate demand? 2. Identify factors that would cause consumption spending to increase. What effect would that have on aggregate dmand? 3. In the context of the AD-AS framework, illustrate and discuss: 1. Demand-pull inflation. 2. Cost-push inflation. 4. Explain and demonstrate graphically (a) a recessionary gap (contractionary gap) and (b) an inflationary gap