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To answer the following questions students should use a sum of relevant economic theories if require for the justification of their answers Students can also use figures supply and demand c

To answer the following questions students should use a sum of relevant economic theories if require for the justification of their answers Students can also use figures ie supply and demand curves for presenting their answers

Consider the financial crisis  in USA
 Explain the origin of this crisis Provide a summary of this crisis consisting of the reasons of this crisis, and the breadth and extent of the crisis Identify countries and markets involved in the crisis  words marks

Nowassume that the crisis has been continuing for  years We call this period as a long run period

  1. Explain the effect of this crisis on USAs GDP in longrunwords marks

  2. Explain the effect of this crisis on USAs inflation rate in longrun words marks

  3. Explain the effect of this crisis on USAs labour market in longrun words

    marks

  4. Explain the effect of this crisis on the levels of Americans consumption in longrun

words marks Explain the effect of this crisis on thelevels of USAs investment in longrun

words marks

  1. Explain the effect of this crisis on USA governments Budget in longrun words

    marks

  2. Assume that you are a policy maker in USs government and central bank how you can

    recover the crisis by changing macroeconomic variables words marks

  3. During the crisis How USA can recover its output gap if it faces an expansionary gap

     words marks

10. During the crisis How USA can recover its output gap if it faces a contractionary gap

 words marks

Feb 01 2020 View more View Less

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