Reference no: EM133394500

Question: After completing the first part of the project, you will need your research to complete the second part. It will consist of the following steps:

Analyze your data from your research and identify the problem, recession or inflation. At this point, you should be able to identify if a country has an inflation or recession problem. Remember the four phases of the business cycle and their characteristics. For example, a recession is when GDP is low, harmful, or less than optimal for over six months.

However, we are under expansion or peak phase if the contrary happens. If inflation is too high, we also have a problem. After identifying the problem, draw the proper AD-AS Model graph showing your country's situation. You can take reference graphs in Chapter 32 of aggregate demand and Supply. I will accept if you draw on paper, take a picture, and attach it to your project.

I will not receive photographs, images, or screenshots from your book or the Internet. I want something other than a GDP, inflation, or Unemployment graph. The last step is creating the following scenario: Suppose that you are an economics advisor of the president, so you have to apply the appropriate fiscal policy, expansionary or contraction, to solve the recession or inflation problem, respectively. Remember, we have three possible solutions depending on the issue for each country.

I am asking for at least one page of your analysis with your graph. You are free to turn in any format and style of your preference. If you mix fiscal policy with monetary policy (interest rates), I will deduct points. Below is an example of Phase Two. Please follow the instructions and take reference from the example.

You have to do your analysis depending on your country's situation.