1.In a short paragraph, explain what aggregate demand and aggregate supply are. Explain how they are different than regular supply and demand. Then describe a consequence that may occur if aggregate supply and demand were not balanced or equal.

2.In a short paragraph, define price level. Explain what would happen in the economy if price levels rose in terms of a producer's reaction and/or a consumer's reaction. Then, explain what would happen if price levels fell.

3.In a short paragraph, define automatic stabilizers. Than give an example of an automatic stabilizer in the economy today. What would happen if the government put a stop to some of these automatic stabilizers in terms of the people they were helping?

4.In a short paragraph, define the term fiscal policy. Explain the difference between expansionary and contractionary fiscal policy. Explain how effective these policies are in helping the economy?