1.Go to the following link to read Franklin Roosevelt's fireside chat of April 14, 1938:

http://www.presidency.ucsb.edu/ws/index.php?pid=15628

Using the terminology of the fixed-price Keynesian model to summarize the arguments made in paragraphs 9-14("I then said this to the Congress:....), which statement best expresses Roosevelt's ideas?

a. In 1938the economy was below equilibrium so output increased.

b. By 1938output had exceeded aggregate expenditures so inventories were rising and output declined.

c. inventories were falling in 1938so that real GDP increased.

d. In 1938the economy was in equilibrium where output =spending.

e. By 1938 it was clear that the Great Depression was ending.

2.In the Fireside Chat above,what macroeconomic concept is expressed in paragraph 46?(It is going to cost something to get out of this recession this way...)

a. hyperinflation

b. the Keynesian spending multiplier

c. full employment GDP

d. The GDP Gap

e. the fixed-price Keynesian model aggregate supply curve.