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ECON08005 Global Macroeconomic Policies - University of the West of Scotland
Identify the impact of the following events on an advanced economy, and critically assess the merits of the possible policy responses of macroeconomic policy makers.
(a) Due to rapid growth in emerging and developing markets the price of commodities such as oil increases.
(b) Stock market booms in advanced economies.
Use the Aggregate Demand and Aggregate Supply framework to explain your answer. State any assumptions you have made in your answer.
Guidance
The main theme of this wide-ranging assignment is how macroeconomic policy can be used to cope with macroeconomic shocks. Give an equal (roughly) to your answer to each scenario. There are two main elements to the assignment. Firstly, to identify how the event will affect an advanced economy. Secondly, to examine the merits of the potential policy responses available to policy makers in the economies affected by these events. Please note that this should be treated as a theoretical/analytical exercise and so do NOT simply describe events taking place in the world economy.
Attachment:- Global Macroeconomic Policies.rar
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