2.How do (a) unemployment benefits and (b) a progressive tax system work to stabilize the downward movements of aggregate demand?

3. How do (a) unemployment benefits and (b) a progressive tax system work to stabilize the upward movements of aggregate demand?

4. Using a diagram, explain how demand-side policies (a) have supply-side effects, and (b) can impact long-term economic growth.

5. Explain some strengths and weaknesses of fiscal policy.

6. Why do decisions on whether or not to use fiscal policy measures depend on more than just economic considerations?

7. Using a diagram, explain crowding out.