1. Suppose that the Federal Reserve ended all measures designed to change interest rates and instead allowed rates to be determined by markets. What would the advantages and disadvantages of this be?
2. What is short term aggregate supply and how does it differ from long term aggregate supply? Also, what can an economy do that desires to increase long term aggregate supply?

3.Try your hand at stabilizing the U.S. debt by using Committee for a Responsible Federal Budget Simulation athttp://crfb.org/stabilizethedebt/. Read through the "Intro" and click "Next" in order to follow the simulation instructions. Answer the following questions once you have completed the simulation:

Were you successful in stabilizing the U.S. debt? If not, how much of a deficit or surplus did you end up with? What does this exercise tell you

about the process of creating a budget plan?

Reexamine the budget cuts or increases you made. What problems would such changes pose for a politician facing reelection?

This budget simulator allows you only to change spending and tax expenditures over a one-year period. This poses what problems to finding a realistic economic solution?

4.Currently the Federal Reserve is gradually raising interest rates. What challenges come with doing that in an economically healthy way? If they were lowering rates, what challenges would come with that?