1. Left to its own devices, with no government macroeconomic intervention, how would the economy attempt to correct itself from a shock to demand or supply?

2. How might the LRAS have been affected by COVID-19?

3. In a WSJ opinion piece on March 25, 2016, the CEO of CKE Restaurants asserts, to paraphrase, that the increased minimum wage in many cities will drive technological advancement and productivity enhancement in the restaurant business. Explain the CEO's logic.

4. Distinguish between the unemployment rate and the labor force participation rate. Explain why economists need to take the labor force participation into account when analyzing the health of the economy. Why is it not enough to look at the unemployment rate?

5. Consider the following news article from June 14, 2021 Wall Street Journal

ECONOMY I CENTRAL BANKS NY Fed May Consumer Survey Finds Public Bracing for Large Ination Gains Consumers expect inflation to hit 4% one year from now, a series high for the New York Fed report