Describe the aggregate demand-aggregate supply curve

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Suppose our country is currently experiencing a crisis, high unemployment, while national income is low.

1. Describe the aggregate demand-aggregate supply curve as the starting point for your analysis?

2. Using the aggregate demand-aggregate supply curve,what do you think caused the crisis, illustrate in the curve what the current balance position is?

3. If the government implements an open market operation policy,how will the impact on the aggregate demand-aggregate supply curve and income?

4. If the government takes the initiative to participate in helping companies and banks in crisis,what will be the impact on the Aggregate demand-aggregate supply curve and income?

5. What is the impact, if people respond to this economic crisis by reducing excessive consumption?

Reference no: EM132405717

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