Overview
Explain the concept of fiscal policy and discuss its role in stabilizing the economy. Analyze the differences between expansionary and contractionary fiscal policies and their implications for aggregate demand, inflation, and unemployment.
Describe the key components of aggregate demand (AD) and aggregate supply (AS) in the context of the aggregate demand-aggregate supply model. Discuss the factors that influence AD and AS and their effects on macroeconomic equilibrium, output, and price levels.