The simple Keynesian model can be analyzed in terms of the TE-TP framework. 1. List the different

Question:

The simple Keynesian model can be analyzed in terms of the TE-TP framework.
1. List the different names for the TE-TP framework.
2. Explain how a total expenditures curve is derived, and what causes it to shift.
3. Describe the three possible states of the economy in the TE-TP framework.
4. Describe the role of business inventories in moving the economy from disequilibrium to equilibrium in the TE-TP framework.
5. Use the TE-TP framework to graphically illustrate an economy in a recessionary gap.