Government Deficits
Read chapter 6 on pages 142–151. Think about how spending and taxation affect a dynamic model, as compared to the static ones in the last section. Consider how different kinds of policies, like sustained interventions and shocks, affect the economy.
Click http://web.archive.org/web/20160326044637/https://mpra.ub.uni-muenchen.de/6403/1/MPRA_paper_6403.pdf link to open resource.