Automatic stabilizers include those elements of government spending that automatically grow during a recession.

Suppose that a bank has $250 in vault cash, $750 in deposits at the Federal Reserve, $9,000 of loans, and deposits of $10,000. How much does this bank have in reserves?

a) $250 b) $750 c) $1,000 d) $9,000

Which of the following would not cause a movement along the AD curve?

a. An increase in the price level. b. A decrease in the price level. c. A change in the interest rate caused by a change in the price level. d. A change in autonomous consumption e. Both a change in the interest rate caused by a change in the price level, and a change in autonomous consumption.