1. What does "Keynesian economics" say about government budget deficits? Are they always good? Always bad? Something in between? Explain.

2. John Maynard Keynes is purported to have once said that "The government should pay people to dig holes in the ground and then fill them up." Putting aside whether he actually said such a thing, whymightan economist suggest such a seemingly silly idea. Under what circumstances would such an idea potentially make sense?

3. Please explain the relationship between Gross Domestic Product and aggregate expenditure.

4. Please explain the relationship between Gross Domestic Product and aggregate demand for goods and services.