1. What is the Taylor Rule and describe howit could be used in the current Macro economy to predict federal reserve action.
2. Explain the difference between nominal and real interest rates and what the FED's influence is on each.
3. How does monetary policy fit into the Keynesian Model from the previous chapter.
4. Using aggregate demand and supply explain the consequences of excessive aggregate spending (too much G) on the macro economy and a corresponding FED response to the resulting expansionary gap.