Address the following questions appropriately.

(i) Explain and illustrate the concept of: (a) a recessionary (or deflationary) gap (b) an inflationary gap. [4] (ii) Describe the policies that Keynesians would recommend in each case. [2] [Total 6]The following data have been extracted from the mortality records of an overseas country. Region A Region B Country Age Population Deaths in Population Deaths in Population Deaths in group at 30 June 2000 at 30 June 2000 at 30 June 2000 2000 2000 2000 (000s) (000s) (000s) 0 - 25 600 282 3,300 1,106 10,200 3.402 26-55 1,284 3,129 1,965 2.214 16,800 18,602 56+ 920 9.617 1.100 8,473 12,900 98,440 Calculate the standardised mortality ratio for each region by reference to the country as a whole. Comment on your results. [5]