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Commentators on the US economy feel the US economy fell into a recession in 2001 and then proceeded into a slow=growth recovery due to a decline in investment.
A. Explain how a change in investment can have a big impact on GDp causing a nationwide slump.Recall that investment is "small' relative to the whole economy.
B. Illustrate your reasoning using our AD/AS model.
C. How did low interest rates combined with increased government spending on defense and homeland security alter the US economic outlook?Explain using our AD/AS model.
Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.
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Identify trends or other patterns in inflation within the an economy of your choice over the last five years using quarterly data from the Central Bank or other Government based Statistical agency websites as a source.
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