1. Define recession and expansion. What are the beginning and ending points of a recession called? 2. Is it possible for an economy to produce an amount greater than potential output? A. No, potential output is the maximum possible output an economy can produce. B. Yes, it is possible to produce an amount exceeding potential output in the short run. C. Yes, it is possible to produce an amount exceeding potential output in the long run. 3. If the natural rate of unemployment is 5 percent, what is the total rate of unemployment according to Okun's law if output is 2 percent below potential output? 4 Define planned aggregate expenditure and list its components. 5. True or False: Expansionary policies are government stabilization policies intended to increase planned spending. 6. Explain what the demand for money is. 7. Explain what a reserve requirement set by the Federal Reserve is