1.In 1933 the U.S. economy was at point _____).This was in part due to__________________.John Maynard Keynes recommended what policy at that time?

a.B;the monetary policies of the Federal Reserve Bank; an increase in government spending on infrastructure projects.

b.C;The Smoot-Hawley Tariff Act;wage and price controls on the economy to prevent inflation.

c.D; The stock market crash;Increased spending on social welfare programs and higher taxes on wealthier Americans.

d.B or A;Government spending on World War II;Expansionary monetary policy.

e.A;Tax cuts by Herbert Hoover;Contractionary monetary policy and an increase in government spending.

CPI AS Inflation is high, unemployment CP16 F is low. AD6 CPh = CP15 A Full emplyment CP14 is reached. B CP12 =3 C D Inflation is low, unemployment AD1 = AD5 is high. AD2 AD 3 AD4 GDP 2 GDP 3 GDP4 GDP1 =5 GDP6 Real GDP