1.What is inflation? Causes? Controls? Is Inflation more likely to appear in Keynesian, Classical or Neoclassical? Why? (25 points)

2.Define Aggregate Supply and Demand. Why is it important? What does it demonstrate?Define the theories of increase and decrease in Supply and then in Demand. How price is determined when subsidies are involved. (25 points)

3.Define Keynesian theory, Classical Theory, and Neoclassical Theory.Explain how each failed and what succeeded it.What is the forecast for the immediate 8 years? What effects and affects will it have. ? (50 points)