1.Suppose by December 25th the U.S. economy looks a lot like it did in 1933.This would mean we would be at point ___ with the following issues taking place:_________________________.It would also mean that point ___ would not be a concern for economists most likely throughout 2021.

a.B; large surpluses of labor and capital equipment; rising unemployment and deflation; E

b.E; large surpluses of labor, greater cyclical unemployment and deflation; A

c.C; falling unemployment rates from greater government spending; B

d.B; large scale business failures and stagflation; E

e.B or C - depending how long social distancing disrupts the economy.

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