Q4:

Bangladesh as well as the whole world are now facing the challenges of the COVID-19 pandemic and because of the lockdown and restriction on the movement, the economy is sluggish and going towards the recessionary gap. Now, if Bangladesh economy is already in a recessionary gap, please answer the following questions:

a) What is the definition of the recessionary gap?

b) what is the condition of the unemployment situation in this stage?

c) To restore the economy to its natural rate of GDP, what are the propositions of Classical Economists were refuted by John Maynard Keynes? How does an economy in a recessionary gap may overcome the problem following the prescription given by Keynes? Explain in detail in your own word.