Recover the crisis by changing macroeconomic variables

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Reference no: EM132601188

To answer the following questions, students should use a sum of relevant economic theories (if require) for the justification of their answers. Students can also use figures (i.e., supply and demand curves) for presenting their answers.

Consider the financial crisis 2007-2009 in USA.

-Assume that you are a policy maker in USA's government and central bank; how you can

-Recover the crisis by changing macroeconomic variables? During the crisis, How USA can recover its output gap if it faces an expansionary gap?

-During the crisis, How USA can recover its output gap if it faces a contractionary gap?

Reference no: EM132601188

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