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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 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
Explain the effect of this crisis on USAs GDP in longrunwords marks
Explain the effect of this crisis on USAs inflation rate in longrun words marks
Explain the effect of this crisis on USAs labour market in longrun words
marks
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
Explain the effect of this crisis on USA governments Budget in longrun words
marks
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
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
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