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Q. In 2008 financial crisis has basis macroeconomists to re-think monetary as well as fiscal policies. Financial experts, economists as well as government policy producers are victims of former Fed chairman Alan Greenspan which is known as "once in a century credit tsunami"-in another words no one saw it coming. By what reasons financial crisis as well as either United States is going in right/wrong direction among its present strategies.
• Concentrate specifically on following:
a. Monetary policy
What do you think how crisis caused in monetary policies?
In reaction to crisis, what effects of policies implemented?
b. Fiscal policies
Why at do you think crisis caused the fiscal policies?
In reaction to crisis, what effects of fiscal policies?
Calculate price, quantity and social surplus for the initial state and each policy.
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