1. Explain how total production is measured?
2. Discuss the short-comings of measuring total production.
3. How does the fed measure inflation?
4. Discuss the federal reserve and treasury department responded to the financial crisis that began in 2007-2008.
5. How does the government use fiscal policy to stabilize the Economy. ( be sure to include both expansionary policies and contractionary policies)
6. Explain the effects of recession and inflation, holding constant monetary policy, on aggregate demand.
(Make sure each answer should be 7-8 lines.)