1.Name two macroeconomic variables that decline when the economy goes into a recession.Name two macroeconomic variables that rise during a recession.(4 points)

2.Suppose that we have to shut down a large portion of our economy because we need to social distance as a result of COVID-19, so consumers spend far less money.If policy makers do nothing, what will happen to aggregate demand?What does the Aggregate Supply and Demand model predict this will do to real GDP and the price level? (6 points)

3.Suppose we decide to require international students to study on campus, even though most universities are promoting online classes in response to COVID-19, and this causes some immigrants working in the United States to decide to leave the country for more welcoming nations like Canada or the United Kingdom.Thinking in terms of our AD-AS model, which curve will this shift, the AD curve or the AS curve and why?How will this affect real GDP and the price level? (6 points)

4.What should the Fed do if it wants to stabilize aggregate demand?What should Congress and the President do to stabilize aggregate demand? (4 points)

5.Explain what an automatic stabilizer is.Give two examples of automatic stabilizers.(4 points)

6.Tell me what fiscal policy is and who is responsible for conducting it. Give one example of a fiscal policy the United States has enacted in response to the Corona pandemic.(4 points)

7.Tell me what monetary policy is and who is responsible for conducting it.Give one example of a monetary policy the United States has enacted in response to the Corona pandemic. (4 points)

8.In the notes I argue that the macro economy might have been more self-correcting in the 19th century than in the 20th century.What do I think changed by 1930 that made the Great Depression world different from the world of Adam Smith?Why was this change important? (4 points)

9.Read Keynes quote on page 448 in 20-5b about how, ". . .in the long run, we are all dead."Explain to me what you think this means in terms of whether or not we should intervene to put people back to work in a recession or wait for the economy to fix itself. How does this relate to our current recession caused by the Corona virus? (4 points)

10.Describe two problems with fiscal policy. (4 points)

11. least two sentences discussing what is the main problem I describe concerning the effectiveness of monetary policy?(4 points)

12.Describe the 3 reasons that federal government debt is different from household debt. (6 points)..