Using aggregate demand and aggregate supply, explain what happens in the short run if the Federal Reserve raises interest rates in the economy. Be sure to detail what happens to aggregate demand, the price level, the level of GDP, and unemployment. Assume that the economy is at full employment before the interest rate increase.

In the figure above, AD1, LRAS1 and SRAS1 denote AD, LRAS and SRAS in year 1, while AD2, LRAS2 and SRAS2 denote AD, LRAS and SRAS in year 2. Given the economy is at point A in year 1, what will happen to the unemployment rate in year 2?  

Liquidity is defined as

If demand is elastic, total revenue is expected to increase following a price increase. 

Fill in the blank with the present subjunctive form of the verb provided: You read:  Les pido que (llegar) temprano hoy. You write in the blank:  lleguen   Te pido por favor que (pensar) _____________ lo que quieres para desayunar.   HINT:  ‘desayunar’ = to eat breakfast  

Part 4: Discussion QuestionsAnswer the following question based on the New Reading and an article from the book. Follow these guidelines;  >Give your opinion in 1 sentence.  >Support it with your own ideas. >Include a specific idea from the article in your own words. >Write at least 4 sentences.  In the New Reading, the article talks about using drones to deliver everyday things. In the book, we read about using drones to deliver medicine and other important items. In your opinion, should companies spend time and money researching drone delivery for both important and everyday items, or should they only research how to deliver important items, like medicine? Write your opinion. Give two reasons for your answer. Use ideas from the readings and your own thoughts.   

NEW READING What is this passage mainly about? a. the challenges that prospective drone delivery companies are facing b. the effect drone delivery will have on truck delivery companies c. the dangerous side-effects of drone delivery d. the solutions that prospective drone delivery companies have proposed

DIRECTIONS: Choose the best option to complete each sentence. Write ONLY the letter in the blank.    1. An abstract idea is about something like . a. plans for Saturday night b. love or beauty     2. If you acknowledge your mistakes, you  . a. pretend they never happened b. accept them and try to do better     3. When a company dismisses 600 employees, they . a. are no longer employed there b. all get substantial raises     4. If you imitate someone, . a. you record what they do b. you copy what they do     5. If you master the martial art of tae kwon do, you   a. are an expert of it b. stop at the beginner level because it’s too hard  

Fill in the blank with the correct word from the new reading. Be careful with spelling!   1. What synonym is used for companies in paragraph B?  2. What transition word is used in paragraph D to provide further information?  3. What does the word their refer to in the fourth sentence of paragraph E?

What is this passage mainly about? a. the challenges that prospective drone delivery companies are facing b. the effect drone delivery will have on truck delivery companies c. the dangerous side-effects of drone delivery d. the solutions that prospective drone delivery companies have proposed