The study of Macroeconomics involves the analysis of economic activity at the aggregate level. Topics include the measurement and determination of national output, total spending, the level of employment, the average price level, interest rates and the forces contributing to their change over time.

What specific theory (model) do economists use to determine Gross National Product (GDP) and the average price level (e.g., Consumer Price Level or CPI)? Applying this model, how do economists use Monetary and Fiscal Policy to bring the economy to a desired level of GDP?

Provide specific examples to illustrate  points.
1.Describe how output and prices are determined.
2.Describe shocks
3.Give an example of a shock
4.Explain how monetary and fiscal policy can offset
Provided an example of the paper in files.