1. Define the following concepts (maximum two sentences each): a. Potential Output ee. Average propensity to consume b . Recessionary Gap ff . Marginal propensity to consume C . Inflationary Gap gg. Average propensity to save d. Recession hh. Marginal propensity to save e . Employment ii. Marginal propensity to spend f . Labour force Simple multiplier g . Unemployment rate kk. Fiscal policy h . Frictional Unemployment 11. Budget surplus Structural Unemployment mm. Stabilization policy Cyclical Unemployment nn. Aggregate demand curve k. Labour productivity OO. Aggregate supply curve CPI pp. Unit cost of production m. The price level qq Aggregate supply shock n. Inflation Aggregate demand shock O. Interest rate SS. Phillips curve Real interest rate tt. Economic growth Exchange rate uu. Opportunity cost of economic r. Depreciation growth S . Appreciation VV. Medium of exchange Value added ww. Gresham's Law U . GDP XX. Fiat money V . Capital stock yy. Deposit money W . Investment Expenditures ZZ. Reserve ratio X. GNP aaa. Target reserve ratio y. Disposable Personal Income bbb. Excess reserves Z. GDP deflator ccc. Money supply aa. Autonomous aggregate ddd. M2 expenditures eee. IOUs bb. Induced aggregate expenditures fff. Present value CC. Consumption function ggg. Bond price dd. Aggregate expenditure function hhh. Bond yields