How government deficits affect long run economic growth

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Reference no: EM132898017 , Length: word count: 1500

Question 1. Explain how government deficits affect long run economic growth. Explain how this effect is transmitted. You should complement your explanations with some graphs.

Question 2. What is economic growth? Is it the same as increasing wellbeing and living standards of population? Explain the links between economic growth and each of these concepts: consumption, investment, and public policies

Question 3. In the Eurozone, which institution oversees monetary policy, and which one controls fiscal policy? The main goal of the European Central Bank is controlling the inflation. Why it is so important? Define aggregate demand and aggregate supply in the long-run and short-run (use graphs)and explain the main effects of rising prices in the economy using the concepts delivered in class

Question 4. Provide two examples of fiscal policies in face of an economic crisis and discuss their positive and negative effects on aggregate demand. Use the concepts of "multiplier effect" and "crowding-out effect" delivered in class

Question 5. Explain what the expected impact of the fall in international trade on the Eurozone economy might be. Use the AD/AS model and the concepts delivered in unit 8. This section must include a written explanation and charts

Reference no: EM132898017

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