1. Using aggregate supply and demand analysis, discuss how the following will affect the aggregate level of output and the price level in the economy.Use a SRAS curve.You need to determine whether the AD or SRAS curve will shift, in which direction it will shift, and how this will affect aggregate output and the price level.

a.A hurricane that destroys half the supply of goods produced in Florida.

b.An increase in the money supply.

2 .What is gross domestic product (GDP)?Describe one method used to calculate GDP (make sure you define all the variables used in this method).

3.Describe what is meant by "fiscal policy."How would the government use "fiscal policy" to attempt to get the economy out of a recession?