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I need Help in the following attachment. (i) Explain and illustrate the concept of: (a) a recessionary (or deflationary) gap (b) an inflationary gap. [4]

I need Help in the following attachment.

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(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 rules of a pension scheme require members to contribute 5% of earnings each month for a maximum of 40 years. Assuming that the interest rate, salary scales and decrements are the same as in the Tables, calculate: (i) the expected present value of future contributions for a member now aged exactly 25 with 3 years of past service whose earnings during the last 12 months were $15,000. [3] (ii) the expected present value of an ill-health retirement benefit of $1,000 pa payable continuously to the member in (i) above. [2] [Total 5]

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